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Whose Tariffs Are Worse For The American Consumer? – CNBC

Tariffs: A Hidden Tax Burdening American Consumers

President Joe Biden and former President Donald Trump share common ground on tariff policy. While some policymakers argue that tariffs can be a tool to protect and help grow domestic industries and ensure national security, tariffs may also result in unintended economic consequences that cost U.S. consumers billions. Trump’s trade war tariffs generated about $233 billion in duties collected by U.S. Customs through March 2024, according to an analysis from the Tax Foundation. Watch the video above to find out which candidate’s tariffs will be more expensive for the American consumer.

Impact on Consumers:

  • Higher Prices: Tariffs increase import costs, which businesses often pass on to consumers through higher prices. This can lead to inflation and reduced purchasing power.
  • Reduced Choice: Tariffs can limit the availability of imported goods, potentially reducing consumer choice and innovation.

Tariff Strategies:

  • Trump Era: Imposed broad tariffs on various goods, particularly targeting China, with the goal of reducing the trade deficit.
  • Biden Era: Maintained most Trump-era tariffs while implementing more targeted tariffs on specific sectors like steel and aluminum. Biden also recruited allies to impose tariffs on China

Economic Concerns:

  • Retaliation: Foreign countries may impose retaliatory tariffs, harming American exports and shrinking the US GDP.
  • Job Displacement: While tariffs aim to protect jobs, they can also disrupt supply chains and potentially lead to job losses in other sectors.

The Debate:

The use of tariffs to protect domestic industries is a contentious issue. Proponents argue for their effectiveness in creating jobs and national security. Opponents highlight the burden they place on consumers and the potential harm to the overall economy.

In conclusion, tariffs are a complex policy tool with both potential benefits and drawbacks. Understanding their impact on consumers and the economy is crucial for informed policy decisions.

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