Making the case for 20% tariffs: Trump CEA Chair pick's economic views

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[johnroberts]

The last time the US had 20% blanket tariffs we slipped into the Great Depression. This is an incredibly bad idea.

[jankrone]

20 percent tariffs are a good idea if you want 10 percent Inflation back.

[judithelaine]

I'm a 79 year old widow, on a fixed income. I'm not alone, lots if other seniors are in the same boat! So, your telling us that paying a tax on everything we buy is a good thing?? I'm not a college educated person, but, I sure know its going to hurt my budget! Shame on you so called money experts tor sanitizing this!

[jeffheinzel]

lol higher tariffs good for economy is the stupidest thing I’ve ever heard

[RoyChartier]

Producers will not take a 10% hit on their product, they'll just find other buyers...like China. Imposing tariffs is a national security issue, as you're pushing allies and trading partners away, in many cases, to your enemies.

[thomasrogers]

I AM AN AMERICAN BUSINESS MAN A HOME BUILDER. I AS THE AMERICAN IS GOING TO HAVE TO PAY THAT TARIFFS. THIS WILL INCREASE THE OF COST OF MY HOMES AND AMERICANS ARE GOING TO PAY HIGHER PRICES . STOP LYING .

[HarryGaye-yh]

Trumps idea fuels it, What's the most effective strategy during this period of volatility with the rate cut? Most of my portfolio is in (20% Index funds, 20% CD's 30% Bonds/T-bills and other assets) I want to explore different strategies to benefit from a potential bubble.

[jamesknehler]

Canadian here. I think i can speak for many by saying canadians will stop vacationing invthe u.s. look for products made in our own country. Lastly hopefully we can start exporting oil to other countries and forget about sell ing next door. We need to start moving away from the U.S.

[rancher]

The threat is if America throws Canada under the bus; who does Canada go to? Chna

[Bradgilliswhammyman]

Let me explain are passed onto the consumer. If imported widget A costs 10 dollars, and after Tariffs is now 18 domestic version will cost 16 or 17 dollars. Domestic producers will not leave money on the table by greatly undercutting the foreign imports. So you have a 40 or 50 percent bump in price for domestic goods and a 60 percent increase in foreign imports.

[brunobembi]

if you threaten your allies, they become allies of your enemy, children

[fredericracine]

lol . Do you think guys that you will pay Canadian oil at 50% discount ?! WSJ is a joke

[brianarthur]

I almost couldn't get past the first minute. In what world will a $10 tariff will get you a $10 decrease in price from the supplier? Maybe if we are talking a 1 or 2 percent hit to profits. To expect any foreign company to let their margins suffer significantly is nuts. I expect higher prices, less trade, retaliation, anger and general chaos. Ramping up tariffs bit by bit, will not help. Good luck folks!

[deanportman]

Producers and factories in China and Canada and Mexico are already at rock bottom. They can't "eat" more reductions in price, and value reductions. We'll find out... If middle class Americans start to be forced to pay more for the endless consumer goods we get from China, things will turn angry quick. Plus, we get so much from China, it is going to have add on effects, and unforseen supply chain consequences. Large scale blanket tariffs are not a good idea. Why go through this uncertainty?

[science_and_facts_please]

Donald Trump's trade wars with China resulted in a U.S. trade deficit of $679 billion. The U.S. economy shed 2.9 million jobs, including 1.4 million in manufacturing. 1, 800 factories closed, and over 700, 000 jobs were moved overseas. The inflation rate rose by 7.75% and the poverty rate rose to 11.4%. The wealth of the top 1% increased 32%.

[Spitts]

That theory assumes that other developed countries will sacrifice themselves to support the US economy? 😅😅😅😅

[jimmycrackcorn]

There have been exactly zero instances of tariffs not being passed through, for various and obvious basic reasons.

[danieldejong]

Canada will not show it's full power hand right now on the tariff threat from Trump. Canadians are not a people to double cross, we may forgive but we won't forget. Slowly but surely during this US administration, we should expand our trading partners.

[brentchattin]

He was tapped to have a post in the Trump administration because of the paper he wrote. Just like Bill Barr was appointed attorney general a few years ago because of an op-ed he wrote supporting Trump. So in order for this to work is for several unusual events working together in order for a 20% tariff to work. Including the very unlikely event that other nations will retaliate. But what is likely to happen is other nations will work on establishing a currency separate from the dollar so the US cannot use extortion in the future. After all, there are billions of people on earth and the US accounts for only about 340 million. The European Union has a larger population than the US. So basically the odds of tariffs not damaging the US and world economy is about the same as drawing to an inside straight. Considering Trump's history with casinos, I don't think it is safe to bet our economy on that happening.

[vladipp]

ridiculous contortionism to justify counterproductive and self-defeating tariffs