Despite campaign promises, President-elect Trump’s proposed across-the-board tariff hikes are expected to increase consumer prices, contradicting his claims that tariffs only impact foreign countries. Walmart, a major retailer, has warned that these tariffs will be inflationary, impacting consumers directly through higher prices. Experts disagree with Trump’s assertion that tariffs are solely a tax on foreign nations, instead highlighting that these costs are ultimately absorbed by American importers and consumers. The potential for retaliatory trade wars and negative impacts on American jobs further complicate the economic outlook.
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President-elect Trump’s proposed tariffs, ranging from 10-20% on all foreign goods and potentially 60-100% on Chinese imports, are projected to significantly increase prices for American consumers. Walmart’s CFO confirmed that the company would likely pass increased costs onto consumers, echoing warnings from other businesses like AutoZone and Stanley Black & Decker. Economists widely disagree with Trump’s claim that other countries would bear the cost, citing previous tariffs that resulted in an $80 billion tax on Americans. Despite this, some of Trump’s Congressional supporters remain steadfast in their support.
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While President-elect Trump’s proposed tariffs are unwise, they are not unconstitutional, as federal law grants the president significant power to impose them. The Supreme Court, however, has established a “major questions doctrine” that allows it to veto executive branch actions deemed too ambitious. Given the Court’s recent history of using this doctrine to strike down Biden administration policies, it remains unclear whether they will apply it to Trump’s tariffs, potentially setting a dangerous precedent for future presidents. The upcoming legal battle over tariffs presents a dilemma: a ruling against them would further empower an already powerful Court, while a ruling in favor would cause economic hardship for many Americans.
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John Q. Hosedrinker