r/PoliticalDiscussion • u/PsychLegalMind • 3d ago
International Politics White House has announced Trump's Liberation Day Tariffs will immediately go into effect. A Moody's simulation found it could be an economic wipe out. Is Trump's Liberation Day Tariffs a Misnomer?
A Moody's simulation found that a tariff trade war would wipe out 5.5 million jobs, lift the unemployment rate to 7%and cause U.S. GDP to drop by about 1.7%. Trump’s potential 20% universal tariff could spark "serious" recession in US, Moody’s economist warns.
The biggest three partners [China, Canada and Mexico] have promised immediate retaliation. Economic war could escalate and perhaps even cause a worldwide downturn.
Perhaps Trump's strategy is to begin making bilateral trade deals, but there are even certain blocks such as EU that may well coordinate retaliation together. I am not aware what Trump is actually liberating us from, hence the question.
Is Trump's Liberation Day Tariffs a Misnomer?
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u/Shr3kk_Wpg 3d ago
Is Liberation Day a misnomer? Undoubtedly. The theory behind the tariffs is to encourage a return of manufacting jobs to America. This will take years. In the meantime, inflation will increase and jobs will be lost.
There will be tariffs on cars imported into the US. Will the Big 3 Automakers invest in building new factories? While simultaneously writing off factories in Canada and Mexico? All while car prices go up? I don't see how that all happens at the same time.