Brace for it:
“Trump’s win could lead companies to push up prices. Here’s why.”
” … U.S. retailers that depend on foreign suppliers are prepared to pass along the cost of his proposed import tariffs to consumers, potentially leading to higher prices for a range of products. Americans stand to lose between $46 billion and $78 billion in spending power each year … due to the new tariffs, the National Retail Federation stated in findings released Monday. … NRF Vice President of Supply Chain and Customs Policy Jonathan Gold said in a statement, ‘A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’ pockets through higher prices.'”
(Read story here.) But Americans won’t just pay for Trump’s re-election at the checkout register. It’ll double-whammy incomes, too.
Anyone versed in Economics 101 knows how the price curve works: The more you charge for something, the less of it people buy. That means fewer jobs in warehousing, transportation, and retailing of imported goods.
Countries slapped with U.S. tariffs are certain to impose retaliatory tariffs on U.S. exports, reducing demand for those products, too, adding job losses in manufacturing and transportation of export goods. Less income for farmers, too, because agricultural products will be the #1 target of retaliatory tariffs.
Was this wise? Probably not. Was it impulsive? Absolutely, like getting drunk and then leaping off a 70-foot-high trestle on a 100-foot-long bungee cord. The damage to America’s economy will be entirely self-inflicted.