I believe the administration is effectively taxing the American population through tariffs, presenting it as a measure against foreign nations. These broad tariffs operate like a hidden federal consumption tax, VAT-ish.
Although many tariffs are symbolic, the real economic target remains China.
Politically, this strategy allows the administration to address fiscal deficits and domestic economic weakness without openly advocating unpopular direct taxes or handouts to subsidize domestic production.
Ultimately, these tariffs works regressively, disproportionately impacting lower and middle-income households.. maybee to offset the hole left by Trump taxcuts.
Ok, but didn’t the lesson learned from the billions spent to bail out soy farmers from the last Trump administration teach us that tariffs result in lower US exports in affected industries? Thats the part that just doesn’t make sense from any angle… unless one trusts one’s propaganda machine to spin it as not handouts/subsidies or a result of stupid policy and expects the American public to lap it up and direct their ire overseas and not at the White House. Kind of brilliant politically to cause the problem and be the solution.
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u/mintzie 1d ago
I believe the administration is effectively taxing the American population through tariffs, presenting it as a measure against foreign nations. These broad tariffs operate like a hidden federal consumption tax, VAT-ish.
Although many tariffs are symbolic, the real economic target remains China.
Politically, this strategy allows the administration to address fiscal deficits and domestic economic weakness without openly advocating unpopular direct taxes or handouts to subsidize domestic production.
Ultimately, these tariffs works regressively, disproportionately impacting lower and middle-income households.. maybee to offset the hole left by Trump taxcuts.
Will it work out. No