The $930 that the average American saved from Trump tax cut has already been wiped out by his trade war, and Americans will pay an additional $3,000 in taxes.
Trump’s tariffs are a $3,000 tax increase on Americans
President Donald Trump’s trade wars have already wiped out all but $100 of the average American household’s windfall from Trump’s 2017 tax law. And that’s just the beginning.
That last $100 in tax-cut gains also could soon disappear — and then some — because of additional tariffs Trump has announced or is considering. If the president makes good on his threats to impose levies on virtually all imports from China and Mexico, those middle-earning households could pay nearly $4,000 more as they shell out more for a vast range of goods — from avocados to iPhones.
Subtract the tax cut, and the average household will effectively be paying about $3,000 more a year in additional costs.
The Trump tax increase is here
Job growth and wage growth are slowing at a time when Donald Trump has decided to raise taxes on every single American. If you are a consumer of any kind, you will be paying more for goods due to Trump’s pointless trade war. The president can continue to believe and falsely claim that foreign governments pay the tariffs, but the economic reality is that the tariffs are being paid for by American consumers.
Companies aren’t eating the cost of the tariffs. They are passing them along to consumers.
The stock market is betting that the US and Mexico reach a deal to avoid the tariffs being imposed on Monday, but political observers and even people inside the Trump administration have been warning that the tariffs are going to happen. Donald Trump wants to look “strong” and he thinks tariffs are good for his political brand.
Trump is driving the economy into recession. The trade war has backfired, and the American people are paying the price.
For more discussion about this story join our Rachel Maddow and MSNBC group.
Mr. Easley is the founder/managing editor and Senior White House and Congressional correspondent for PoliticusUSA. Jason has a Bachelor’s Degree in Political Science. His graduate work focused on public policy, with a specialization in social reform movements.
Awards and Professional Memberships
Member of the Society of Professional Journalists and The American Political Science Association