By John Q. Hosedrinker 
President Trump’s new 10% tariffs, while impacting the global economy and raising consumer prices in the US, notably exempt the energy sector, including oil and natural gas. This exemption follows significant financial contributions from the fossil fuel industry to Trump’s re-election campaign and reflects his administration’s ongoing close ties with the sector. While partially shielding the industry from tariff-related market chaos, indirect cost increases from tariffs on steel and aluminum remain a concern. Critics argue this exemption prioritizes wealthy donors over American consumers, contradicting Trump’s pledges to lower prices.
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Trump’s exemption of big oil donors from his tariffs package is a prime example of how a system can morph into an oligarchy. The rising gas prices, already exacerbated by various factors like the transition from winter to summer gas blends and the increased cost of equipment repairs, are further inflated by this preferential treatment. This isn’t simply about market forces; it’s about a deliberate manipulation of the system to benefit a select few.
This situation perfectly illustrates the dynamics of an abusive family. The big oil companies are the favored children, consistently receiving special consideration and escaping the consequences faced by others. The constant shifting of favor, making companies compete for the President’s approval, further entrenches this power imbalance. It’s a clear demonstration of “pay to play” politics, contradicting the “drain the swamp” rhetoric often used.
The supposed purpose of tariffs – to generate revenue and protect domestic industries – is completely undermined when large corporations, particularly those who generously contribute to the President’s campaign, are granted exemptions. This creates a system where money buys influence, allowing those with deep pockets to circumvent regulations and maintain their profitability regardless of the economic climate. This isn’t simply a matter of navigating complex economic forces; it’s a system rigged in favor of the already powerful.
The economic arguments used to justify these actions also crumble under closer examination. The suggestion that raising prices, even in a time of rising costs, is a viable solution to maintaining profit margins ignores the impact on consumers. This practice essentially allows corporations to profit from both increasing supply costs and increasing demand, creating a self-serving cycle that disproportionately affects lower-income individuals.
The supposed principles of supply and demand seem to have vanished. Companies raise prices regardless of whether supply is up or down, demand is up or down. This highlights a fundamental flaw in the typical economic models, showing that the real-world operation is far more complex and less equitable than the simplified explanations often presented. The reality is that many corporations operate without any inherent moral compass; they will exploit every loophole and use any means necessary to maximize profits, including lobbying for favorable policies and, in this case, securing exemptions from tariffs.
Furthermore, the argument that this is a way to raise money for a strategic reserve also rings hollow. If the actual goal was to replenish the strategic reserve, a more equitable approach would be to use taxes or other methods to raise revenue from the wider population rather than selectively benefitting a privileged few. The implication is that the real goal isn’t about replenishing the strategic reserve, but about enriching a small group of connected individuals.
The situation exposes the inherent problems of relying on tariffs as a primary economic policy tool. The potential for corruption and the creation of an uneven playing field are undeniable. The lack of transparency and the preferential treatment of certain corporations further solidify the impression of an oligarchic system where power and influence are concentrated in the hands of a select elite. The result is a system where the powerful dictate the terms, leaving everyone else to bear the consequences. The idea of a free market becomes a mockery under these circumstances.