Trump’s tariffs augur economic disaster | Editorial
Everyone but the president seems to understand tariffs are a tax on imports that ultimately increase prices, while retaliatory tariffs will lead to fewer exports for U.S. companies and farmers.
As expected, Donald Trump’s address to Congress was littered with lies.
Contrary to Trump’s wild claims, tens of millions of dead people — including some born hundreds of years ago — are not collecting Social Security checks. Trump did not inherit “an economic catastrophe” from the Biden administration. Nor did he eliminate the “electric vehicle mandate” because there never was one.
In all, Trump made more than two dozen false claims during his unpresidential address that felt more like a production of P.T. Barnum meets the WWE.
But perhaps the biggest whopper was Trump’s claim that tariffs are going to make “America rich again.”
Try telling that to Wall Street, where the Dow Jones Industrial Average tumbled more than 1,300 points over two days after Trump launched his trade war.
By Day Three, the markets clawed back some of the losses after Trump delayed the tariffs just on automakers. But the sell-off continued the following day even after he delayed most of the new tariffs on Mexico until April 2. Hours later, he did the same for Canada.
Trump’s erratic edicts are no way to run a country. They also underscore lingering concerns about his mental fitness. To make matters worse, tens of millions of Americans lost thousands of dollars in their retirement accounts because of the stock market confusion brought on by Trump’s shifting tariffs.
Trump continues to revel in the careless disruption he has wrought from his mass firings of government workers, senseless executive orders, and reckless tariffs aimed at Canada, Mexico, and China.
But to quote football philosopher Ricky Watters: “For who, for what?”
Trump’s slash-and-burn policies are doing more harm than good. We are stuck with a mad king on a power trip, exerting retribution and dominance just because he can. Even worse, most Republican officials are cheering on his cruelty and nescience.
There is no logic to Trump’s daily spasms. He claims the tariffs on Canada and Mexico will end once the countries stem the flow of fentanyl into the United States. Beyond the disconnect of using tariffs to fight illicit drug trafficking, there are several problems with Trump’s plan.
Less than 1% of the fentanyl entering the United States comes from Canada, while the majority comes from China. There is no real-time national data to track fentanyl deaths in the U.S. So how will anyone know if Canada or Mexico are doing anything to fight the drug flow?
While fentanyl remains a public health concern, the number of related overdose deaths plummeted well before Trump was even elected. More to the point, experts said imposing tariffs on allies will do little to fight the drug trade.
Since Trump largely lives in a delusional, fact-free world, at some point he’ll likely declare victory and move on. But until then, the only guarantee is that Trump’s tariffs are going to inflict financial pain on the U.S. and beyond.
The middle and working class will be weakened, manufacturing will be less competitive, and the mighty tech industry’s innovation will be stunted.
Everyone but Trump understands tariffs are a tax on imports that ultimately increase prices. Trump claims tariffs are paid by foreign countries, but famed investor Warren Buffett, who knows more about financial markets than most, explained that tariffs are “a tax on goods” ultimately paid by consumers.
“The tooth fairy doesn’t pay them,” Buffett remarked.
As such, Trump’s tariffs are going to increase prices on a large swath of goods, including groceries, computers, and cars.
Automakers warned that if the now-paused tariffs on them go through, the price of new cars will increase anywhere from $4,000 to $12,000. Tariffs will also drive up prices on wood, steel, cement, aluminum, and appliances, which, in turn, will add $17,000 to $22,000 to the cost of a new home.
Trump’s tariffs prompted Mexico, China, and Canada to do the same on American goods. That, in turn, will hurt many American businesses, especially farmers, since agricultural products account for a large portion of U.S. exports.
In Pennsylvania, agriculture supports nearly 600,000 jobs. The commonwealth’s 5,000 dairy farmers contribute $12 billion to the state economy and export more to Mexico than any other country.
During Trump’s previous term, he imposed tariffs on China that devastated the soybean industry, which dropped by 75%. Trump responded by giving soybean farmers subsidies, adding to the taxpayer cost of his reckless trade policies.
Those tariffs had long-term implications. After Trump’s 2018 trade war, China started buying more soybeans from Brazil. U.S. soybean exports never bounced back while Brazil’s exports doubled.
Ultimately, Trump’s tariffs will increase inflation, reduce trade, and lead to a loss of jobs in the U.S. Many economists believe Trump’s tariffs will lead to a recession.
That’s why the conservative editorial board at the Wall Street Journal, which has long championed free markets, called Trump’s tariffs the “dumbest” in history.
On this point, The Inquirer Editorial Board and our erudite friends at the Journal are in full agreement.