Even on Its Smallest Scale, Trump’s Tariffs Plan Would Destroy Economy
Donald Trump may have called tariffs the “most beautiful word in the dictionary” on Tuesday, but reporting shows that his economic plans would destroy the economy in nearly every metric. His isolationist policy would skyrocket inflation rates, harm the stock market, and damage America’s global economic standing.
A sweeping report from The Washington Post Wednesday found that independent market experts agree that Trump’s tariff plans would immediately raise costs to U.S. consumers, rather than make his global adversaries pay as he promises. At his appearance at the Economic Club of Chicago on Tuesday, Trump bragged about a potential “2,000 percent tariff,” not entirely out of line of his economic threats he’s levied against Mexico and China recently. In the past, he has threatened tariffs of 10, 20, 100, 200, or even 1000 percent.
His ridiculous, still ill-defined tariff plan would shock the U.S. economy according to the Post’s analysis, causing price increases on items at the grocery store and at the gas pump. Economic think tanks estimate that the tariffs could cost the typical American household somewhere between $2,600 and $7,600 per year, according to the Peterson Institute for International Economics and the Yale Budget Lab.
According to the Institute on Taxation and Economic Policy, the poorest Americans would be hit the hardest, paying an average of 6 percent more under Trump’s plan to implement 20 percent automatic tariffs on all imports. The American economy at-large would also suffer, with that same plan resulting in a $4.3 trillion tax hike over the next 10 years, according to the Committee for a Responsible Federal Budget.
As expected, Trump’s team called the economic findings fake news. “These Wall Street elites would be wise to review the record and acknowledge the shortcomings of their past work if they’d like their new forecasts to be seen as credible,” said Brian Hughes, a Trump campaign senior adviser, to the Post.
Despite what Trump may claim, tariffs are certainly not “the greatest thing ever invented,” and isolating the U.S. economy from the rest of the world will only hurt people at home.