New Delhi, April 2 -- President Donald Trump is set to announce a comprehensive tariff plan on Wednesday (April 2), targeting potentially trillions of dollars' worth of imported goods. While specifics regarding the scope and rate of tariffs remain unclear, Trump has dubbed the initiative "Liberation Day," asserting that it will boost domestic manufacturing and generate trillions in federal revenue.

Ahead of Trump's expected tariff announcement, understanding how tariffs work and their potential impact is crucial.

Tariffs are taxes imposed by a government on imported goods. These fees are paid by US-based companies when they bring products into the country. The collected revenue goes to the US Treasury, making tariffs a source of governm...