Welcome to The Logoff: Today I’m focusing on Donald Trump saying he’s imposing tariffs on products from around the world. If real and permanent — two big ifs — the policies represent a shift in economic policy that will have major effects on all Americans.
What’s the latest? Trump today promised a 10 percent tariff on all foreign goods, with goods from many countries — including some of our largest trading partners — being taxed at a far higher rate. Trump also said certain foreign-made cars would face import taxes of 25 percent. Trump said the tariffs would take effect right away, though the exact timing is unclear.
Is it real this time? This was Trump’s most sweeping tariff announcement to date, and he announced it during a high-profile White House ceremony, suggesting these tariffs may be here to stay. That said, it was only a month ago that Trump announced tariffs on our largest trading partners, only to rescind or delay some of them days after they took effect.
Can Trump do this without Congress? There will likely be legal challenges, but existing law gives the president wide authority to unilaterally impose tariffs.
What do tariffs mean for you? In the short term, higher prices. Tariffs are taxes paid by importers and passed on to consumers, so, if they remain in place, you can expect to pay more for a sweeping range of goods. Economists also fear that this tariff policy could kick off a recession, particularly as other countries promise to counter with taxes on US exports.
What’s the big picture? There are valid critiques of past US free trade policies — particularly in how they’ve hurt certain communities and segments of the labor force. But economists are skeptical Trump can bring back US manufacturing at anywhere near the scale he’s promising, and they’re confident these new taxes will result in severe and widespread economic pain.
