The Trump administration said that it is considering increasing the proposed tariff on $200 billion in Chinese imports to 25% from 10% – indicating there is now no possibility that there won’t be tariffs at all. President Trump has asked U.S. Trade Representative Robert Lighthizer to hike the duties, which could be implemented as early as next month and are implimented as a TAX paid by the US Consumers of Chinese goods – it doesn’t cost China a think yet the MSM has allowed the word tariff to go unexplained while it’s the American people who pay the price and the Top 1% who reap the benefits as those tariff taxes go to pay for more tax cuts for Trump’s Billionaire Buddies.
Not only are tariffs an unfair and possibly illegal tax on the American people but they also increase the costs of goods and services by removing competition from the local market. Not only is Trump placing a $50Bn stealth tax on American Consumers and causing runaway inflation by making things more expensive but China will retailiate with their own $50Bn tax on American goods and who does $50Bn matter more to – US or Chinese Consumers? So Chinese consumers will stop buying American goods altogether while US consumers will simply pay $50Bn more and keep buying the same stuff. China said this morning:
“China has made full preparation for the U.S. threats to escalate the trade war, and will have to retaliate to defend national pride and the people’s interests.”
The reason most Americans don’t realize that tariffs are actually just a tax they are forced to pay or that they are one of the worst economic ideas in history is that we haven’t had a tariff war since 1930 – when one started the Great Depression. After that, people who actually went to Business School had no doubts at all that tariffs were a TERRIBLE idea – and they have been used sparingly ever since. Until now.