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Confused about Trump’s tit-for-tat tariffs? Here’s a simple analogy

President Trump’s global tariffs - the most significant escalation America has imposed in a century — is having ripple effects across the global economy. Trump has paused his so-called “reciprocal tariffs” on the US’ trading partners until July. He has dramatically raised, and then slashed, tariffs on China and raised — and promptly delayed — punishingly high tariffs on the European Union. A lot has happened over the last few months, and trade wars can be complicated to understand. To make things easier, CNN Business Reporter Anna Cooban explains with a very simple analogy.

02:08 - Source: CNN
Latest from CNN Business 16 videos
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Confused about Trump’s tit-for-tat tariffs? Here’s a simple analogy
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Seen this photo illustration made on May 28, 2025, Labubu are a line of fictional characters inspired by Nordic mythology and depict elven monsters. Created by the Chinese artist Kasing Lung, they have become very popular and hard to find collectibles among young people and celebrities.
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Viral Labubus boost company’s profits by nearly 400%
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Pastor who led DEI boycott against Target speaks after CEO steps down
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<p>Valerie Trapp joins The Lead</p>
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How Labubu's popularity teaches us about "kidulthood"
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<p>Danny Batten joins The Lead</p>
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NC outdoor shop owner warns of tariff price hikes by 2026
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<p>Phil Mattingly reports</p>
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A Target department store on May 17, 2023 in North Miami Beach, Florida.
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Why customers turned away from Target
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FILE - In this Sept. 7, 1995 file photo, John F. Kennedy Jr., co-founder and editor-in-chief of the politics-as-lifestyle George magazine, unveils the magazine's first cover in New York. A documentary film on John Kennedy Jr.'s life opens Friday, July 22, 2016, in select theaters. It also airs on Spike TV at 9 p.m. EDT on Aug. 1, and a DVD release is set for Aug. 16. (AP Photo/Marty Lederhandler, File)
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JFK Jr. explains his magazine's controversial Cindy Crawford cover
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Chef Corey Lee at Na Oh at the Hyundai Motor Group Innovation Center Singapore. Shot in June 2025.
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This three-Michelin-starred chef opened a restaurant in a Singapore car factory
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AI expert: ‘We’ll be toast’ without changes in AI technology
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Beef prices are at record highs. Omaha Steaks' CEO offers two money-saving tips
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<p>Justin Wolfers joins The Lead</p>
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Spot robot at Hyundai car factory in Sinapore. Shot in June 2025
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In this high-tech Singapore factory, robot dogs check human work
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Kevin O’Leary calls 15% cut on US-China chip sales a 'form of blackmail'
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