Former President Donald Trump has proposed imposing large tariffs on foreign goods entering the United States as a way to address various issues in the country. He claims that tariffs will create more factory jobs, lower food prices, shrink the federal deficit, and even promote world peace. Despite mainstream economists’ skepticism of tariffs, Trump has outlined extensive tariff plans, including imposing a 60% tariff on goods from China and a 20% tariff on all other imports.
The proposed tariffs have been met with criticism, with experts warning that they could have a detrimental impact on the U.S. economy. A report from the Peterson Institute for International Economics concluded that Trump’s tariffs could reduce economic growth and lead to increased inflation. Vice President Kamala Harris has dismissed the tariff threats as unserious, but the Biden-Harris administration has issued tariffs itself, including taxes on Chinese goods.
It is important to note that tariffs are a tax on imports, collected by Customs and Border Protection agents. While Trump claims that foreign countries pay the tariffs, it is actually American companies that pay, passing on the costs to consumers. Tariffs are intended to protect domestic industries and can be used to pressure other countries on various issues. Despite Trump’s belief in tariffs, studies have shown that they are likely to raise costs for companies and consumers, as well as provoke retaliatory measures from other nations. While Trump’s trade war did not restore jobs in the American heartland as intended, it did have political implications, boosting support for Trump and Republican candidates in areas most affected by the tariffs.
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