Tariffs a negotiation tactic?

in #trump4 days ago

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"Trump's just using tariffs as a negotiating tactic"

Okay but he keeps arguing he will pay off our debt with tariffs.

Note the $2.7 trillion estimate (over 10 years) is not accounting for dynamic economic effects. The actual revenue raised from Trump's proposal to implement a high universal tariff on all imports is likely much lower.

And of course as the piece notes, this is a tax on consumers by another name:

"But much of that would be paid by U.S. consumers, most economists say, rather than foreign countries. That’s because importers usually pass the cost of tariffs along by raising the prices of their goods. In response, domestic producers often raise prices to increase profit margins. And U.S. producers may face retaliatory tariffs from other countries, driving up the cost of domestic production and leading employers to cut costs at home."

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