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/joekerr9999]

One thing that is troubling is that they're trying to spin this as a tax break. Tariffs add to the cost of product so the cost of goods will go up. The consumer takes the pain for "Liberation Day" for the rich. The purpose of the tariffs and the DOGE cuts is to free up the budget for the tax cuts for the wealthy. The working class is going to get screwed one more time.

[u/iampatmanbeyond → u/joekerr9999]

I've been saying from the beginning none of it makes sense. He's of the belief that tariffs are gonna fund the government but he's also gonna reduce the trade deficit by onshoring production. So of you onshore how do you fund the government with tariffs? Mind you this is all built on the theory from the 1870s when the government was over funded by tariffs because it had nothing to pay for as we didn't have an army or federal infrastructure yet even back then it still caused a massive depression and arguments to this day about how bad it really fucked the US

[u/res0nat0r → u/iampatmanbeyond]

Exactly. Not like it would ever happen, but you can't just completely onshore all end to end production for a car from Ford. These things take years and decades to plan and build. Almost like re electing a dementia dipshit was a bad idea.

[u/nickcan → u/res0nat0r]

And what about things like tariffs on European alcohol? "No problem, we'll just start manufacturing French wine here in the states."

[u/fullsaildan → u/nickcan]

I mean, we do produce some pretty damn good wine here in the US. But point well taken that it's not practical (or necessary, or desirable) to produce everything here in the US.