‘Liberation Day’ Tariffs Will Liberate People—From Their Income
We’re told that “Liberation Day” tariffs on imports from around the world will raise $6 trillion in federal revenue over the next decade, plus another trillion from automobile tariffs. But the only true “liberation” will be us Americans—consumers and taxpayers—being liberated from even more of our hard-earned income. So hold on to your wallet.
If you don’t believe that Liberation Day is bad news for the overwhelming majority of us, first remember that U.S. consumers are, as always, the ones who pay U.S. tariffs. Whatever the Trump team collects from foreign imports will be shifted back to us in the form of higher prices.
Then there is the fact that the administration is already preparing for economic damage control with emergency aid for U.S. farmers. The need for such aid is a tacit admission that the president’s trade policy—marketed as a tool to strengthen America—will trigger retaliations from our trading partners that will hurt many American producers, including farmers who export this country’s agricultural bounty to help feed the world.
And to paper over this destructive policy, the administration will blow another gaping hole in the federal budget with bailout money to compensate the victims.
How do I know? We’ve been here before.
During Trump’s first term, his trade war with China sparked retaliatory tariffs that cost American farmers an estimated $27 billion
Article from Reason.com
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