Why Trump gets away with tariffs
Published On Nov 26, 2024, 2:46 PM
The article discusses how former President Donald Trump is planning to impose significant tariffs on imports from major trading partners like Mexico, Canada, and China after being re-elected. Despite the economic consensus that tariffs raise costs for American consumers and obstruct efficiency, many voters appear unconcerned and may even support these measures. The article highlights several reasons for this disconnect: confusion over what tariffs are, a lack of perceived negative impact during Trump's first term, and Trump's tendency to negotiate by threatening larger tariffs than he ultimately imposes. This situation points to a wider misunderstanding of tariffs and their implications, leaving room for potential economic consequences.
Stock Forecasts
SPY
Negative
Trump's planned aggressive tariffs could lead to increased costs for various consumer goods, which may negatively impact companies reliant on imports. However, his historical tendency to negotiate down the final tariff rates might mitigate drastic market impacts. Overall, heavy tariffs can stoke inflationary pressures, potentially harming consumer goods companies.
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