Putting a new tariff concept in the public forum shows that the former President, if re-elected, would continue to weaponize tariffs as his tax-de-jour
Hard to imagine – but former President Trump has suggested additional retail tariffs that could eliminate the U.S. income tax. Certainly, many retailers would view this concept as a contorted twist of a tariff policy that has already raised prices, caused inflation, and disrupted supply chains. Funny, because this new idea is a tad reminiscent of former House Speaker Paul Ryan’s B.A.T. tax (which Trump never really liked). However, just placing his new “all tariff policy” in the public forum – clearly shows that the former President, if re-elected, would continue to weaponize tariffs as his tax-de-jour.
The Biden White House is countering Trumpian Trade efforts by saying that President Biden wakes up every day thinking about lowering the cost of retail items. Assuming this to be true (and that the President is not sleepwalking the concept) his efforts are a bit too little / too late. Visible efforts to improve America’s role in International Trade have been nonexistent under the Biden Administration. Biden’s IPEF has imploded, GSP and MTB have not been renewed, China is challenged, AGOA is floundering, and Haiti is drowning.
With few international places for importers to trade under beneficial terms, and with the UFLPA (along with tariffs) slowing imports from China, no wonder there is retail inflation. It’s just really hard to keep prices down. Senator John Thune (R-S.D.) recently indicated that prices are up 20% since President Biden took office.
Former President Trump has vowed to lower consumer costs, but economists (who study his policies) claim that his efforts will be even more inflationary than the ones we currently have and, if his new “all tariff policy” were to turn real……retail and USA exports will surely get hit really hard. Plus, the math on this is perplexing. The U.S. Government in 2023 raised roughly $2.6 trillion in personal and corporate income tax. At the same time, the USA imported about $3.8 trillion of goods and services, so the new tariff would have to be at least 68.4% if everything were to stay the same. However, retailers know that if prices go up, sales will go down and, jobs will get lost – with less income available to be taxed.
