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The new tariffs match taxes on US goods abroad — a sign of potential escalation in a global trade war
“THREE GREAT WEEKS, PERHAPS THE BEST EVER, BUT TODAY IS THE BIG ONE: RECIPROCAL TARIFFS!!! MAKE AMERICA GREAT AGAIN!!!” Trump posted Thursday morning before the announcement.
Tariffs are a key part of Trump’s plan to raise revenue to pay for the extension of his 2017 tax cut on top of other promised tax cuts. But the burden of tariffs could ultimately fall on American consumers, economists say — a potentially troubling self-inflicted wound as inflation has begun to creep higher again.
Importers who pay the tariffs pass the costs on to retailers, which then raise prices for consumers. That has left some Trump proponents stunned and angry, including the Wall Street Journal editorial board, which snarkily asked: “Does President Trump understand money?” And Republican Kentucky Senator Mitch McConnell in an op-ed in the Courier-Journal criticized Trump’s tariffs for threatening to inflict high costs on Kentuckians.
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