Tariffs; i.e., higher taxes on the common man. Ugh.
"... the Trump mini-boom was tempered by the economic uncertainty and costs of his tariffs that hit friendly nations and adversaries alike. These included 25% duties on steel and 10% on aluminum, as well as levies on washing machines, solar panels and an array of Chinese goods that raised costs for U.S. businesses and consumers. “Tariff man” forgot about the common man.
The Tax Foundation estimated that the Trump tariffs cost American households more than $625 annually. A 2019 study by Fed economists looked at two waves of trade policy “shock,” first in 2018 and then in the first half of 2019, and estimated the impact reduced GDP growth by about one percentage point. Tariffs contributed to the slowing economy and business investment late in 2019, which then plunged at the onset of the pandemic.
Mr. Trump and Congress responded to Covid with a $2 trillion relief bill, which was perhaps understandable given the panic in March 2020. But after shutting down the economy on the advice of Anthony Fauci, Mr. Trump too easily went along with Democratic spending priorities, including enhanced unemployment benefits that paid workers more not to work.
He also unilaterally extended Congress’s short-term student loan payment pause and eviction moratorium on dubious legal authority, which set the stage for Mr. Biden to do so repeatedly. In December Mr. Trump prodded Congress to spend another $900 billion, which was counterproductive as the economy was fast recovering. Mr. Trump is no fiscal conservative, and one risk during a second term is that Democrats cajole him into expanding entitlements, especially if there’s a recession.
Mr. Trump’s plans for the second term are unclear and sometimes contradictory. On the one hand, he wants to extend the 2017 tax rates that expire at the end of 2025. This is a big advantage over President Biden. But Mr. Trump is also proposing a 10% tariff on all imports that the Tax Foundation says would shrink the economy by 1.1% and threaten more than 825,000 U.S. jobs."
"... the Trump mini-boom was tempered by the economic uncertainty and costs of his tariffs that hit friendly nations and adversaries alike. These included 25% duties on steel and 10% on aluminum, as well as levies on washing machines, solar panels and an array of Chinese goods that raised costs for U.S. businesses and consumers. “Tariff man” forgot about the common man.
The Tax Foundation estimated that the Trump tariffs cost American households more than $625 annually. A 2019 study by Fed economists looked at two waves of trade policy “shock,” first in 2018 and then in the first half of 2019, and estimated the impact reduced GDP growth by about one percentage point. Tariffs contributed to the slowing economy and business investment late in 2019, which then plunged at the onset of the pandemic.
Mr. Trump and Congress responded to Covid with a $2 trillion relief bill, which was perhaps understandable given the panic in March 2020. But after shutting down the economy on the advice of Anthony Fauci, Mr. Trump too easily went along with Democratic spending priorities, including enhanced unemployment benefits that paid workers more not to work.
He also unilaterally extended Congress’s short-term student loan payment pause and eviction moratorium on dubious legal authority, which set the stage for Mr. Biden to do so repeatedly. In December Mr. Trump prodded Congress to spend another $900 billion, which was counterproductive as the economy was fast recovering. Mr. Trump is no fiscal conservative, and one risk during a second term is that Democrats cajole him into expanding entitlements, especially if there’s a recession.
Mr. Trump’s plans for the second term are unclear and sometimes contradictory. On the one hand, he wants to extend the 2017 tax rates that expire at the end of 2025. This is a big advantage over President Biden. But Mr. Trump is also proposing a 10% tariff on all imports that the Tax Foundation says would shrink the economy by 1.1% and threaten more than 825,000 U.S. jobs."