It’s happening again. Two nights ago, Trump dropped a tariff bomb: 25% on imports from Mexico and Canada , plus a 10% hit on Chinese goods. And if that wasn’t enough, he straight-up warned Europe that they’re next .
According to independent research, these new tariffs will cost the average American household an extra $830 per year . And guess what? Markets are already bleeding in the pre-market session.
Meanwhile, Canada’s prime minister wasted no time firing back, slapping a 25% tariff on U.S. imports. That’s right—Trump started a fight, and now American businesses are stuck in the crossfire.
Tariffs Are Just a Tax on Americans
Let’s break it down. Tariffs aren’t some genius economic move—they’re a tax on imported goods. And who pays that tax? Not China. Not Mexico. You do. U.S. companies that rely on imports have to eat those costs, and guess where they pass them? Straight to American consumers.
So, if your car, fridge, or even your six-pack of beer starts costing more, you know who to thank.
The Trade War Didn’t Bring Jobs Back
Trump’s big claim? That tariffs would bring manufacturing jobs back to the U.S. Reality check: They didn’t. A Federal Reserve study found that while a few industries got short-term protection, tariffs caused a net loss of American jobs.
Why? Because when companies have to pay more for materials, they cut costs elsewhere—like laying off workers or moving operations overseas. Take the example of Harley-Davidson. After Trump’s tariffs sparked a trade war, the European Union retaliated with its own tariffs on American motorcycles. Instead of boosting U.S. jobs, this forced Harley to shift some production to Thailand to avoid the extra costs. So much for America First.
Tariffs Didn’t Shrink the Trade Deficit Either
Another big Trump promise? That tariffs would reduce America’s trade deficit. The result? The trade deficit actually grew, hitting a record $678.7 Billion in the end of 2020. Instead of making the U.S. more competitive, Trump just made everything more expensive.
And now? He’s doing it all over again.
