WEBVTT 1 00:00:00.120 --> 00:00:04.759 Tariffs are everywhere. Countries are adding them, removing them, and 2 00:00:05.120 --> 00:00:08.400 arguing about them. But what are tariffs and how do 3 00:00:08.480 --> 00:00:11.640 they affect us? In this English lesson, you're going to 4 00:00:11.880 --> 00:00:16.000 learn the key vocabulary all about tariffs, and also learn 5 00:00:16.160 --> 00:00:18.920 about them too, so that the next time you turn 6 00:00:18.960 --> 00:00:21.480 on the news and the topic is on the subject, 7 00:00:21.679 --> 00:00:24.399 you'll be able to understand and you'll be able to 8 00:00:24.480 --> 00:00:28.280 use them in conversation. Let's start by talking about what 9 00:00:28.519 --> 00:00:32.600 tariffs are and key phrases to learn right from the start. 10 00:00:32.840 --> 00:00:36.799 So a tariff is a tax placed on goods imported 11 00:00:37.200 --> 00:00:42.119 from another country. So some key vocabulary here are imports 12 00:00:42.159 --> 00:00:46.880 and exports and taxes. I'll leave a glossary in the 13 00:00:46.960 --> 00:00:49.799 description so you can learn these. But let's start with 14 00:00:50.039 --> 00:00:54.560 a simple example. Imagine the US by steel from China, 15 00:00:54.759 --> 00:00:59.000 but the US government adds a twenty five percent tariff. 16 00:00:59.200 --> 00:01:04.159 That means Chinese steel becomes twenty five percent more expensive 17 00:01:04.480 --> 00:01:10.079 unless the Chinese steel companies reduce their prices. We'll talk 18 00:01:10.120 --> 00:01:14.239 about the reasons that countries are adding tariffs later, but 19 00:01:14.400 --> 00:01:17.760 first here are some more examples. If the US has 20 00:01:17.879 --> 00:01:22.200 tariffs on European cheese, this means that the imported cheese 21 00:01:22.439 --> 00:01:27.519 costs more, so people in the US might make different choices. 22 00:01:27.719 --> 00:01:31.120 And if there are tariffs on smartphones, then these imported 23 00:01:31.200 --> 00:01:36.239 phones become more expensive than local phones. European countries have 24 00:01:36.359 --> 00:01:39.680 tariffs too, so there are tariffs or there were tariffs 25 00:01:39.760 --> 00:01:44.280 on American made cars, meaning that cars bought in the 26 00:01:44.400 --> 00:01:49.480 EU from America were more expensive than cars assembled or 27 00:01:49.560 --> 00:01:53.000 cars made in Europe. Often when we're talking about this, 28 00:01:53.079 --> 00:01:56.319 we're going to use the passive voice, Okay, so we 29 00:01:56.400 --> 00:01:59.359 can use the passive voice to explain this a little 30 00:01:59.400 --> 00:02:04.239 bit more. For example, tariffs are added to imported goods, 31 00:02:04.599 --> 00:02:07.680 So we can use this to make tariffs the focus 32 00:02:08.199 --> 00:02:12.039 and say tariffs are added to imported goods. Another one 33 00:02:12.080 --> 00:02:16.759 is taxes are collected by the government. Taxes are collected 34 00:02:16.800 --> 00:02:20.520 by the government, And another example is prices are increased 35 00:02:20.560 --> 00:02:24.560 to protect local businesses. So that is the simple explanation 36 00:02:24.639 --> 00:02:28.680 of what tariffs are. It's basically a tax on imports 37 00:02:29.000 --> 00:02:34.039 to make them more expensive. But why do governments want 38 00:02:34.120 --> 00:02:38.759 to use tariffs? At the moment, a lot of tariffs 39 00:02:39.039 --> 00:02:42.319 being added are comeing from the United States, and at 40 00:02:42.360 --> 00:02:45.479 the moment as well, the United States is trying to 41 00:02:45.599 --> 00:02:49.240 make trade deals with other countries, and a lot of 42 00:02:49.280 --> 00:02:53.199 this seems to be political, but there are other reasons 43 00:02:53.240 --> 00:02:57.520 why countries add tariffs. The first reason, and this is 44 00:02:57.560 --> 00:03:00.599 not just related to the US but just in general. 45 00:03:00.840 --> 00:03:05.479 The first reason is to protect local jobs, So to 46 00:03:05.560 --> 00:03:10.319 protect local jobs and local industries. And when we're talking 47 00:03:10.360 --> 00:03:15.919 about this, we often use modal verbs for possibility of 48 00:03:16.280 --> 00:03:20.120 something happening. So instead of just saying it happens, like 49 00:03:20.400 --> 00:03:24.560 tariffs protect local jobs, you can use the word can, 50 00:03:24.879 --> 00:03:28.599 or might or could, So you might want to use 51 00:03:28.639 --> 00:03:32.240 these types of modal verbs instead by saying tariffs can 52 00:03:32.439 --> 00:03:36.719 protect local jobs. Tariffs might protect local jobs. But the 53 00:03:36.800 --> 00:03:42.319 idea is that, let's say imported clothes from Asia are 54 00:03:42.439 --> 00:03:47.439 cheaper than clothes made in the UK. British factories won't 55 00:03:47.439 --> 00:03:51.199 do as well because people tend to buy clothes based 56 00:03:51.240 --> 00:03:55.759 on price, so if they are cheaper coming from Asia, 57 00:03:55.960 --> 00:03:59.759 then people will just choose those clothes instead those tea, 58 00:03:59.759 --> 00:04:03.199 shir and genes, et cetera. But let's say the UK 59 00:04:03.360 --> 00:04:06.919 government adds a tariff which means that these now are 60 00:04:06.960 --> 00:04:11.039 more expensive from Asia, clothes in the UK or made 61 00:04:11.039 --> 00:04:15.960 in the UK remain competitive or will become competitive, which 62 00:04:16.000 --> 00:04:19.720 will do two things. Firstly, prices go up, so because 63 00:04:19.759 --> 00:04:23.920 there are no more cheaper clothes, prices will increase. However, 64 00:04:24.519 --> 00:04:28.399 there will be more jobs created and the British factories 65 00:04:28.439 --> 00:04:31.120 and British companies will do better. So the idea is 66 00:04:31.160 --> 00:04:34.160 that it's going to protect local jobs. The second reason 67 00:04:34.519 --> 00:04:39.519 is to raise government money to bring in more tax revenue. 68 00:04:39.600 --> 00:04:42.480 Now there is a big debate about where this money 69 00:04:42.560 --> 00:04:45.680 comes from, and from what I know, it mainly comes 70 00:04:45.759 --> 00:04:49.480 from the consumer. So the consumer will end up paying 71 00:04:49.600 --> 00:04:53.759 more for the imported goods, but the government sees this 72 00:04:53.920 --> 00:04:57.399 as revenue and it's like a tax on the goods. 73 00:04:57.600 --> 00:05:00.199 And then at the moment, it seems to me like 74 00:05:00.399 --> 00:05:04.759 the biggest reason governments are talking and introducing tariffs at 75 00:05:04.759 --> 00:05:08.920 the moment is for political reasons, and this can sometimes 76 00:05:08.959 --> 00:05:12.600 be called a trade war. So countries use tariffs to 77 00:05:12.720 --> 00:05:16.639 pressure other countries. And we've seen this a lot over 78 00:05:16.680 --> 00:05:20.279 the past six months, where the US has introduced tariffs 79 00:05:20.360 --> 00:05:24.480 and then they have got into negotiations with other countries. 80 00:05:24.639 --> 00:05:29.000 But we've also seen other countries respond by introducing their 81 00:05:29.000 --> 00:05:32.000 own tariffs on the US too. So a great phrase 82 00:05:32.079 --> 00:05:35.399 for you to learn is tariffs can protect jobs, but 83 00:05:35.680 --> 00:05:38.879 they also make goods more expensive. Now, let's talk about 84 00:05:38.879 --> 00:05:42.199 how tariffs affect everyday people, and we talked about it 85 00:05:42.240 --> 00:05:44.439 a little bit in the last section, but the main 86 00:05:44.480 --> 00:05:48.360 idea is that these tariffs aren't just about governments. They 87 00:05:48.399 --> 00:05:53.439 also affect consumers too. Now, in economics, people talk about 88 00:05:53.480 --> 00:05:57.680 consumers is just people who buy things, so it's in context. 89 00:05:57.800 --> 00:05:59.920 But an example is, let's say there's a temper se 90 00:06:00.480 --> 00:06:04.839 tariff on all electronics coming into the country. This means 91 00:06:05.079 --> 00:06:07.240 if you want to buy a new laptop, is going 92 00:06:07.279 --> 00:06:11.040 to cost one hundred dollars more if the laptop was 93 00:06:11.279 --> 00:06:14.800 one thousand dollars. If there are tariffs on't imported fruit, 94 00:06:15.120 --> 00:06:18.040 then oranges and bananas are going to cost more in 95 00:06:18.079 --> 00:06:22.279 the supermarket. Now, there's a business reaction here too, from 96 00:06:22.560 --> 00:06:26.879 businesses who have consumers in a specific country but their 97 00:06:26.920 --> 00:06:31.160 factory is abroad because a big part of doing these tariffs, 98 00:06:31.240 --> 00:06:33.959 or at least that's what they're saying, is to move 99 00:06:34.279 --> 00:06:37.959 more factories back to the US. So if the US 100 00:06:38.199 --> 00:06:41.000 has a tariff and it's really high, then the company 101 00:06:41.199 --> 00:06:44.120 will say we will make these products now in the 102 00:06:44.240 --> 00:06:48.759 US to avoid tariffs. So for example, a car company 103 00:06:48.959 --> 00:06:52.319 might build a plant a factory in the US to 104 00:06:52.480 --> 00:06:57.800 avoid the tariffs so that their car becomes more competitive. However, 105 00:06:57.839 --> 00:07:00.639 there's an important thing to know here as well, which 106 00:07:00.720 --> 00:07:04.079 is called the supply chain. Now, the supply chain just 107 00:07:04.199 --> 00:07:08.959 means where the parts of the car, for example, are made. 108 00:07:09.079 --> 00:07:12.680 Another example is a phone might use screens from South 109 00:07:12.759 --> 00:07:16.639 Korea a chip from another country, but it is assembled 110 00:07:16.800 --> 00:07:21.000 in China. So this brings in complexity to tariffs, and 111 00:07:21.040 --> 00:07:24.000 this is one of the reasons why certain people think 112 00:07:24.040 --> 00:07:27.319 they're not a great idea when it comes to trade. 113 00:07:27.480 --> 00:07:30.680 So the supply chain is simply just talking about whether 114 00:07:30.800 --> 00:07:34.240 different parts of a product are created and how they 115 00:07:34.360 --> 00:07:37.519 all come together to be assembled. Let's now talk about 116 00:07:37.519 --> 00:07:41.199 some vocabulary and expressions about trade, because this is going 117 00:07:41.240 --> 00:07:44.439 to really help you understand the topic more in terms 118 00:07:44.439 --> 00:07:47.600 of learning the right words and phrases for English and 119 00:07:47.639 --> 00:07:50.879 also help you talk about this topic. Now. The first 120 00:07:50.920 --> 00:07:55.959 one is called free trade. Free trade. Now, free trade 121 00:07:56.040 --> 00:08:01.680 is where countries trade with no tariffs or restrictions, and 122 00:08:01.720 --> 00:08:05.279 a good example of this is the EU. So there 123 00:08:05.319 --> 00:08:08.600 are various countries in the EU and this is a 124 00:08:08.639 --> 00:08:12.639 free trade area, so there are no tariffs or restrictions 125 00:08:12.839 --> 00:08:17.920 from countries like Spain, Germany, and France. Another useful expression 126 00:08:17.959 --> 00:08:22.519 here is to retaliate retaliate, and to retaliate means to 127 00:08:22.639 --> 00:08:27.439 respond with an action. So, for example, if one country 128 00:08:28.040 --> 00:08:32.840 raises tariffs, the other country often retaliates. We've seen this 129 00:08:33.240 --> 00:08:36.200 over the last few months where one country has raised 130 00:08:36.200 --> 00:08:40.960 tariffs and then the country has retaliated by raising tariffs 131 00:08:40.960 --> 00:08:44.480 on that country too. Another great phrase to know is 132 00:08:44.600 --> 00:08:49.600 trade deficit trade deficit. If a country has a trade deficit, 133 00:08:49.840 --> 00:08:54.320 this is when the country imports more than it exports, 134 00:08:55.120 --> 00:08:58.679 so it brings more goods into the country than it 135 00:08:59.000 --> 00:09:01.960 sells to the other countries. A great example of this 136 00:09:02.320 --> 00:09:05.399 is the US and a lot of other countries have 137 00:09:05.480 --> 00:09:09.840 a large trade deficit with China, and this is because 138 00:09:10.000 --> 00:09:13.840 China has become the factory center of the world. And 139 00:09:13.879 --> 00:09:16.960 now what we're going to talk about is some conditional 140 00:09:17.039 --> 00:09:20.960 sentences because this is perfect for tariffs, as we're talking 141 00:09:21.000 --> 00:09:27.320 about possibilities and also real future possibilities. For example, if 142 00:09:27.559 --> 00:09:31.480 tariffs go up, prices will go up. If tariffs go up, 143 00:09:31.720 --> 00:09:34.759 prices will go up. So this is saying that the 144 00:09:34.879 --> 00:09:39.399 price is dependent on the tariff. If tariffs go up 145 00:09:39.440 --> 00:09:43.200 on imported cars, consumers will pay more. If tariffs go 146 00:09:43.320 --> 00:09:46.600 up on imported cars, consumers will pay more. And we 147 00:09:46.639 --> 00:09:50.480 can also use might in a conditional sentence to talk 148 00:09:50.480 --> 00:09:54.519 about a possibility. An example might be if countries keep 149 00:09:54.720 --> 00:09:58.919 raising tariffs, it might start a trade war. If countries 150 00:09:59.039 --> 00:10:02.399 keep raising tariffs, it might start to trade war. So 151 00:10:02.519 --> 00:10:06.240 this is saying that this is a possibility for the future, 152 00:10:06.440 --> 00:10:10.159 and we can use might here to help us state that. 153 00:10:10.200 --> 00:10:13.639 We can also use the second conditional here too. For example, 154 00:10:13.720 --> 00:10:17.879 if tariffs were lower, consumers would save money. If tariffs 155 00:10:17.960 --> 00:10:22.399 were lower, consumers would save money. This is a hypothetical 156 00:10:22.879 --> 00:10:25.840 and non real example. And then let's look at some 157 00:10:26.000 --> 00:10:29.480 idioms now related to this topic. So the first one 158 00:10:29.519 --> 00:10:32.320 is pick up the tab. Pick up the tab, which 159 00:10:32.360 --> 00:10:35.960 means to pay for something, often when it's expensive. So 160 00:10:36.039 --> 00:10:38.480 for example, shoppers are the ones who pick up the 161 00:10:38.519 --> 00:10:42.000 tab when tariffs are raised, So shoppers are the ones 162 00:10:42.039 --> 00:10:44.480 who pick up the tab. They are the ones who 163 00:10:44.639 --> 00:10:48.279 pay for something. You'll also hear the term hit the wallet, 164 00:10:48.480 --> 00:10:53.120 hit the wallet, and you'll often hear political commentators use 165 00:10:53.200 --> 00:10:57.200 this one. For example, tariffs have hit people's wallets hard 166 00:10:57.440 --> 00:11:00.720 this year. Tariffs have hit people's whilets hard this year. 167 00:11:00.919 --> 00:11:04.600 This means to affect someone in a negative way in 168 00:11:04.679 --> 00:11:08.320 terms of price. Another one using my name is jack 169 00:11:08.440 --> 00:11:11.600 up the prices to jack up the prices, and this 170 00:11:11.679 --> 00:11:16.440 means to raise prices suddenly and sharply. For example, companies 171 00:11:16.720 --> 00:11:20.320 had to jack up the prices after tariffs were introduced. 172 00:11:20.480 --> 00:11:24.639 Companies had to jack up the prices after tariffs were introduced, 173 00:11:24.679 --> 00:11:28.000 so they had to raise prices suddenly and sharply. And 174 00:11:28.080 --> 00:11:32.000 another one is tighten your belt to tighten your belt, 175 00:11:32.440 --> 00:11:36.200 which means to spend less money because things are more expensive. 176 00:11:36.399 --> 00:11:39.919 For example, people are tightening their belts because of higher 177 00:11:40.080 --> 00:11:43.879 grocery costs. People are tightening their belts because of higher 178 00:11:44.080 --> 00:11:49.159 grocery costs. A topic that is similar to tariffs is inflation. 179 00:11:49.360 --> 00:11:51.320 If you'd like me to make a lesson on inflation, 180 00:11:51.600 --> 00:11:53.519 let me know in the comments. And what to do 181 00:11:53.559 --> 00:11:56.039 now is to check the description and look at all 182 00:11:56.159 --> 00:11:59.080 of the phrases we've used in this English lesson, and 183 00:11:59.120 --> 00:12:02.279 then watch another lesson, which if you're on YouTube, is 184 00:12:02.320 --> 00:12:05.399 on your screen. If you're on Apple or Spotify, then 185 00:12:05.519 --> 00:12:08.120 check the description for that 'll just go back and 186 00:12:08.240 --> 00:12:11.480 listen to more podcasts. Thanks for listening and watching, and 187 00:12:11.559 --> 00:12:12.919 speech you soon Bye for now.