News flash: It’s you! While Donald Trump focuses on tariffs, you, the hardworking, overworked, underpaid American, trying to figure out which of your three jobs can afford you basic healthcare (Spoilers: None), will be the one taking the brunt of Donald Trump’s new tariffs.
No need to panic just yet! President-elect Donald Trump’s strategy on tariffs is just a threat — for now. But you could face the slap of tariff on your tired face as soon as next month if he sticks to his guns.
Now, tariffs are not all evil. Tariffs can be great for America — on paper at least. They protect domestic manufacturing, bringing new companies in, creating more underpaying jobs, and generating more revenue. So, what’s the problem, are we just being anti-American?
Here’s the thing: According to The Peterson Institute for International Economics, households in the bottom 90% of income brackets will face a disproportionate impact from these tariffs. In simple terms: the people who are already suffering will only suffer more. And that’s not new. In 2021 alone, Americans paid $46 billion more in tariffs alone thanks to the “Made in China” stamped on them. And it is only getting worse.
Although Trump’s strategy on tariffs has frequently varied in scope and size, Donald Trump has floated general tariffs of up to 20% on imported goods, as well as up to 60% on China. In recent weeks, he’s threatened Canada and Mexico too with 25% tariffs. Give us a break! What did the polite Canadians do? They are our top trade partners.
What does this mean for you? Higher prices! Furniture, clothing, electronics, and even medicines. Not only that. But tariffs may also reduce business profits, thereby pushing businesses to hold down wages or employment opportunities for workers. In short: Expensive stuff and less salary!
When it comes to rolling out the broad-based tariffs that were top campaign promises of Trump, the strategy is not yet formed. However, according to The National Retail Federation, it could cost consumers between $46 billion and $78 billion in annual spending power. So, next time you’re at a Walmart and see a price tag that seems a little more ridiculous than usual, blame Donald Trump’s strategy on tariffs. It’s almost like a modern-day Robin Hood story—but everyone is getting robbed.
So, while Trump focuses on tariffs, you, our dear reader, will be focusing on trying to pay the rent. Enjoy the ride or invest in a pyramid scheme, we can’t tell you what to do!
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