Donald Trump, presidential election, “I firmly believe in tariffs” Sayed This is not the first time this week. “I think they are beautiful.”
President Trump argues that the heavy tariffs he will impose during his second term will “make us rich” without paying any price to American companies or consumers. It is a dangerous fantasy.
Trump’s position on tariffs begins with his long misunderstanding of international trade, and he misleads international trade as a zero -sum game with manipulated rules for the United States. “We are subsidized to Canada accordingly. [of] More than $ 100 billion annually ” Sayed Christine Welker Meet the media. “We pay nearly $ 300 billion in Mexico.”
Trump mentioned the US trade deficit to these countries. It is as big as half As he claimed. The gap between exports and imports is not a subsidy. This reflects the products that Americans voluntarily buy. In other words, it means that Americans get something worthwhile in return.
But in Trump, the trade deficit is essentially bad and aims to remove it by imposing tariffs. This is only possible when the price of imported goods rises due to tariffs and the competitiveness of domestic production alternatives is reduced, but Trump argues that tariffs do not raise prices.
Trump “Americans are not in China’s tariffs” aver 2019. “They are receiving price for China’s praise.”
The self -proclaimed ‘tariff man’ Trump clearly does not understand. How the tariff works. It is a tax collected from an importer, not an exporter.
Theoretically, exporters can reduce the price and respond to the price, and the importer may swallow additional costs. However, many studies have shown that tariff costs are mainly paid by US intermediate and finished buyers.
Mary Amiti and two co -authors of the New York Federal Reserve Bank said, “US tariffs are almost entirely burdened by US companies and consumers.” Reported In 2020. The result is consistent with the following: result Previous research and subsequent studies.
Tax Foundation estimate The tariffs imposed during the first term of Trump, which the Biden administration generally maintained, spent almost $ 80 billion annually. This is “one of the biggest tax hikes in decades.” And it is not considering the effects of retaliation tariffs, that is, loss of production, reducing income, or loss of consumer selection.
Trump was not embarrassed when Welker mentioned that “your previous tariffs spent about $ 80 billion in costs.” “They don’t cost anything to Americans,” he insisted. “There was no cost in this country. I made money in this country.”
It is not surprising that President Trump does not admit that tariffs are taxed by Americans, so there is no disadvantage in the additional tariffs he promised to impose during his second term. This includes 10% or “universal basic tariffs” if possible. 20 percent; tariff 60 percent or Maybe more About Chinese products, Addicted “Additional 10% tariff”; President Trump imposed a 25% tariff on Canada and Mexican imports. promise I decided to impose the first day of inauguration.
Trump “I will impose a 25% tariff” Rush Border supply chain for US manufacturers and Raise For goods such as food, clothing, and cars, “drugs, especially pentanil and all illegal foreigners, are valid until they are brought into the United States.” In other words, if you believe that such taxes will make us rich.
This tariff cannot be done with the 10% tariff imposed by President Trump on Chinese products. claim The Chinese government will suppress illegal pentanil supply by encouraging the execution of drug traffickers, and the Tax Foundation says it will increase the $ 1.2 trillion tax in 10 years. Project. “In the long run, we estimate that GDP will decrease by 0.4% and employment will decrease by 344,900 due to tariffs.”
As often as Trump, we should not sincerely do what he says.
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