Last night, Donald Trump’s vague tariff threats came into focus as he announced plans to impose a 25% tax on all products entering the country from Canada and Mexico and an additional 10% tariff on goods from China as one of his first executive orders. Independent studies have found that Trump’s proposals would raise taxes for the typical American family by up to $3,900 a year.
According to reporting by The Washington Post, economists have warned that Trump’s proposals would probably raise prices, hurt the stock market and spark economic feuds with much of the world.
Sixteen Nobel Prize-winning economists signed a letter this summer warning that Trump’s proposal would “reignite’’ inflation, which is nearly back to levels sought by the Federal Reserve after peaking a few years ago.
The study done by CRFB contradicts Trump’s false claims that any debts will be offset by issuing huge tariffs on American trade partners. However, the analysis does mirror Trump’s first-term economic performance, which increased the national debt by more than $7 trillion.
“During his first term, Donald Trump failed on the economy as the only sitting president to leave office with fewer American jobs than when he was sworn in. Trump’s unnecessary trade wars and tax scams for the wealthy cratered the economy and made it even harder for working families to make ends meet,” said American Bridge 21st Century spokesperson Brandon Weathersby. “We’re more than a month out from inauguration day, but Trump is already committed to picking up where he left off by agitating our trade partners, introducing inflationary policies, and raising prices for everyday households.”
It’s not just tariffs that pose a dangerous threat to the economy. The Peterson Institute for International Economics predicted that Trump’s plan to deport millions of people, coupled with his terrible economic proposals, would shrink the economy while driving consumer prices higher and spiking inflation between 6% and 9.3%.
The same study found that a mass deportation operation, as Trump describes, would cost an estimated total of at least $315 billion. The study emphasizes this was a conservative estimate that didn’t account for the long-term costs of sustained mass deportation or the additional costs of removing millions of people in a singular operation.
The Peterson Institute also estimated the cost of a program aiming to arrest, detain, process, and deport one million people per year “would average out to $88 billion annually, for a total cost of $967.9 billion over the course of more than a decade.”
Published: Nov 26, 2024 | Last Modified: Dec 30, 2024