Rather than tamp down inflation or boost growth, the broad tariffs Trump plans to impose this week are likely to upend the US economy in damaging ways.
In the comics, the supervillain Bizarro is the opposite of Superman in every way — and in the bizarro world of President Trump, tariffs are a magic bullet to revitalize the economy, lower consumer prices and protect American jobs.
But the real-world economic reality is the opposite: Tariffs raise costs for American families and hurt more workers than they help.
Rather than tamp down inflation or boost growth, the broad tariffs Trump plans to impose this week are likely to upend our economy in damaging ways.
Tariffs are taxes imposed on imported goods, and despite Trump’s repeated claims, Americans — not foreigners — generally pay them. Studies consistently show that tariffs lead to higher prices for consumers.
Trump’s proposed 25% tariffs on imported automobiles, for instance, could add thousands to the cost of a new car, affecting both imports and domestically produced vehicles that use imported parts.
When imported goods become pricier due to tariffs, American producers typically raise their prices, meaning tariffs push up consumer costs across the board.
Trump initially claimed that tariffs wouldn’t raise prices. When it became obvious that prices would rise and the stock market tanked, administration officials began to argue that higher prices are necessary and even beneficial.
Yet higher prices on everyday goods — from clothing and appliances to groceries — harm working families, shrinking their purchasing power and standard of living. Trade’s downward pressure on prices saves American households thousands of dollars annually.
The consequences extend beyond higher consumer prices: American companies depend heavily on imported materials and parts.
