One might think that after months of tariff policies being used to “punish” foreign countries for what Trump deems to be bad behavior or unfair business practices that the President might have learned what tariffs are by now.
One would be incorrect.
Despite input from economists around the country and the world, Donald Trump continues to assert that somehow he is making other countries — China, primarily — pay billions of dollars in fees to the United States for the privilege of selling their exports to our hungry consumers. Unfortunately, that’s not how it works, like, at all.
When tariffs are imposed on imported goods, it is almost universally the consumers who end up paying the inflated costs of the product — and when I say inflated, I mean actually false, inflated value, because tariffs are always simply retaliatory numbers, arbitrary. It could be a tariff of ten percent or of fifty percent, and both numbers have nothing to do with the value of a product.
The real results of Trump’s tariffs have been felt only in the United States: Lost jobs, closed factories, fields of soybeans left to rot.
True to form, Trump has declared victory over and over in his trade war, most recently on Monday, when he tweeted that China had agreed to lift some tariffs of their own:
China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.
— Donald J. Trump (@realDonaldTrump) December 3, 2018
Had that been true, it would have justified the skyrocketing investment markets on Monday. Tuesday, as literally anyone who was asked about it struggled to explain what the hell Trump was talking about — there never was any such agreement from China — the markets came crashing back down again.
So has he figured it out yet? Check out his Tuesday tweets and see if he’s got this tariff thing down yet, or if he thinks it still makes him some kind of hero:
The negotiations with China have already started. Unless extended, they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina. Bob Lighthizer will be working closely with Steve Mnuchin, Larry Kudlow, Wilbur Ross and Peter Navarro…..
— Donald J. Trump (@realDonaldTrump) December 4, 2018
……on seeing whether or not a REAL deal with China is actually possible. If it is, we will get it done. China is supposed to start buying Agricultural product and more immediately. President Xi and I want this deal to happen, and it probably will. But if not remember,……
— Donald J. Trump (@realDonaldTrump) December 4, 2018
….I am a Tariff Man. When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so. It will always be the best way to max out our economic power. We are right now taking in $billions in Tariffs. MAKE AMERICA RICH AGAIN
— Donald J. Trump (@realDonaldTrump) December 4, 2018
…..But if a fair deal is able to be made with China, one that does all of the many things we know must be finally done, I will happily sign. Let the negotiations begin. MAKE AMERICA GREAT AGAIN!
— Donald J. Trump (@realDonaldTrump) December 4, 2018
I wonder if the title “Tariff Man” comes with a cape.
Featured image via screen capture
