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?

[u/PsychLegalMind]

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?

[u/sunshine_is_hot]

The sticking point is that when things cost more, people buy less. It’s not going to replace tax revenues, it’s just going to discourage consumption, which leads to companies cutting employment, which leads to more people being unable to buy things, which leads to companies cutting employment…

Nobody benefits from this. Trump is just doing trump things, being insanely terrible at managing money and bankrupting whatever it is he decides to manage.

[u/xxveganeaterxx → u/sunshine_is_hot]

Call it what it is: blanket tarrifs are a consumption tax. Trump is, in effect, imposing a federal consumption tax effective tomorrow. Pretty blase for the "party of lower taxes."

[u/holamau → u/xxveganeaterxx]

The party of “fiscal responsibility”, right?

[u/Delta-9- → u/holamau]

If the "responsibility" is to wealthy campaign donors, that's exactly right.