Tariffs are taxes. Farmers should remember Trump’s tariffs the last time He was president. Trump’s tariffs wrecked the ag trade agreements and, with their collapse, the farm economy. Things got so bad that Trump and his allies pumped out millions and millions of dollars in farm subsidies.
But tariffs affect everyone. See this sample of what Trump’s 2.0 taxes would do to taxes for a median household.
“Median household income is about $80,000, so a 4 percent increase in the cost of living is in effect a tax of +$3,200 or more on the typical family.”
According to Paul Krugman, we can expect more results from Trump’s tariffs:
- The dollar might strengthen, making what American manufacturers sell to foreign markets more expensive.
- American manufacturers rely in part on certain imported goods so that these American businesses will find their costs increase.
- The Trade Deficit will increase.
- Interest rates are likely to rise.