Trump's Tariffs Whack Trump Voters - WSJ Editorial
Trump won the Presidency a second time by promising working-class voters he’d lift their real incomes. Which makes it all the more puzzling that he’s so intent on imposing tariffs that will punish those same Americans.
Tariffs are taxes, and Mr. Trump’s latest tariffs are estimated to be about an annual $150 billion tax increase. Taxes are antigrowth. That’s the message investors are sending this week since Mr. Trump let his 25% tariffs on Canada and Mexico take effect. The President also raised his 10% tariff on China by another 10%. Canada and China retaliated, while Mexico is holding off until Sunday.
(snip)
Brace for higher prices on berries, bell peppers, and, gulp, beer. Target CEO Brian Cornell told CNBC Tuesday that tariffs on Mexico may force the company to raise prices on fruits and vegetables. About 30% of vegetables and fresh fruit sold in the U.S. come from Mexico. Modelo’s Mexican-produced Especial is the best-selling beer in the U.S. Best Buy CEO Corie Barry said Tuesday that Mr. Trump’s tariffs “make price increases for American consumers highly likely.” Nafta, which was supplanted by the USMCA, encouraged electronics manufacturers to set up shop in Mexico instead of China. Hope you don’t plan to buy a smart TV since it could be 25% more expensive.
(snip)
The U.S. imports about 3,315 gigawatt hours of electricity on average from Canada each month—enough to power about 3.7 million homes. These flows help stabilize the grid and lower prices in the Northeast and Midwest. New England’s grid operator estimates the tariffs could cost the region between $66 million and $165 million a year. Energy makes up 40% of primary aluminum producers’ costs. Several Midwest foundries have closed in recent years amid rising energy prices. The Trump tariffs will harm the very workers he claims to be trying to help.
(snip)
The President also professes to love American farmers, but he apparently loves tariffs more. U.S. farmers are already being squeezed by low crop prices and inflation. The American Farm Bureau Federation (AFBF) says farmers are losing money on almost every major crop planted for the third straight year. Tariffs will increase their pain. About 85% of the U.S. potash supply for fertilizer is imported from Canada. China is hitting U.S. farm exports with a 15% tariff, which will let farmers in Brazil and Australia grab market share. “Even more costs and reducing markets for American agricultural goods could create an economic burden some farmers may not be able to bear,” AFBF President Zippy Duvall said Tuesday.
https://www.wsj.com/opinion/donald-trump-tariffs-canada-mexico-china-working-class-voters-dc140dbc?st=PX1vgz&reflink=desktopwebshare_permalink
free
= new reply since forum marked as read
