The Negative Effects Of Trump's Tariffs

 

Donald Trump is waging war on the rest of the world - a trade war. He has imposed tariffs on almost every country in the world - ranging from 10% to 50%. And he's proud of it. He will happily tell you that he's winning that war - and that other nations have agreed to his tariffs (and that both nations benefit from them). 

But that's true only in his feeble imagination. His authoritarian ambitions may benefit from his crazy tariffs, but no one else benefits - not in this country or in other countries.

The tariffs are just a bullying tactic used by Trump to force other nations to bend to his will. They may agree temporarily to go along with the tariffs (to avoid even more onerous tariffs), but no one likes to be bullied. While they may not say it out loud, the nations that are the recipients of the tariffs have to be angry about it. 

They will now have less trust in the United States and its leadership. That's because Trump has tossed out economic agreements that benefitted everyone. Why should they now trust he will keep any new agreements? They shouldn't! He has demonstrated he will toss out agreements that he made (like the revised NAFTA agreement he made with Canada and Mexico) whenever he thinks he wants something better. 

And that's just with our friends. In the Third World, it's even worse. We had already damaged these nations by cutting off aid they received through USAID. Putting tariffs on them is just adding insult to injury. Why should they continue to support America's agenda when they get no aid or trade? Many will move into China's sphere of influence, because China will supply that aid and purchase their products.

But it's not just the rest of the world that is hurt by the tariffs. Most American citizens will also be hurt. While other countries may be hurt by the tariffs, it is American consumers who have to pay for those tariffs through higher prices for the goods they buy. The tariffs really amount to a huge new tax on Americans.

And it's a very regressive tax. It will not hurt the rich, who can easily absorb the higher prices (which make up a tiny portion of their massive incomes). But the middle class, the working class, and the poor will be hurt, because they will see inflation eat away at their incomes. And the less a person makes the more they will be hurt.

Trump may think he's winning, but no one else is - not here in this country or in other countries. The tariffs will make life harder for most people, but the billionaire narcissist doesn't care.