Donald Trump promised that when he was in office, we would see “the biggest economic boom in American history.” Fast forward a couple of months, the convicted felon is now our president, and has placed new tariffs on imported goods from other countries. These tariffs caused the stock market to drop rapidly, which is typical with tariffs. Trump then announced a 90-day pause of these tariffs, causing the market to rise again. He blamed the economic crash on Federal Reserve Chair Jerome Powell and former President Joe Biden.
The Republican Party’s main goal was to lower taxes and create a more powerful economy. However, by the looks of the stock market, Trump is doing the exact opposite. Trump’s new tariff policy is extremely alarming for the industry. He doesn’t realize the economic consequences that will result from these tariffs.
Trump doesn’t think about how these tariff policies will affect the average American. He was born into the lap of luxury, allowing him to do whatever he wanted without having to worry about the cost of anything. The average American works about 40 hours a week, and earns their money to fulfill their basic needs. Even before Trump’s tariffs, many Americans struggled to buy everyday necessities because of the cost. As prices of products go up, so will the poverty rate. Companies may run into problems when planning expenses, resulting in them going out of business and unemployment issues. Trump and his administration are making insane decisions with the new tariff policy. He is so self-centered and uneducated that he doesn’t seem to think about the effects these tariffs will have on the average American, and by the looks of it, he never will.
The tariffs Trump has proposed were not thought through. He has placed these tariffs on over 180 countries, including some of the most remote places on earth. According to The Guardian, Trump placed a 10% tariff on goods from Heard Island and McDonald Island, which are near Antarctica. The tariffs will have no effect on the stock market, because these islands have a human population of zero. The islands are covered in glaciers, and are only home to penguins. They have no infrastructure and no commercial activity. This is one of the many prime examples on how little thought was put into these tariffs. Nobody is safe under Trump’s tariff policies, not even the penguins.
Trump states that “Tariffs don’t cause inflation, they cause success,” so he hit all Chinese goods with a 145% minimum tariff. Trump thinks that increasing these tariffs means that more companies will build factories to make products and goods in the United States, resulting in the “Golden age of America.” On the other hand, the United States does not have these factories built, and it would take years to even build them. This will result in prices skyrocketing because we do not have the resources to make products. In other words, it will cause inflation.
Although these tariffs have numerous negative impacts on the economy, many may argue that the tariffs help American manufacturing become the global leader in innovation and have significant economic growth. Trump’s tariffs will re-shore productions from other countries back to the U.S.
Trump believes that these tariffs will affect foreign countries, and that they would need to pay more to the U.S. while in reality, American consumers will be paying them.
The new tariff policies Trump has put in place are beyond concerning for the American economy. It is extremely important that the American people stay informed about these tariffs and the effects they can have on the American industry. The stock market and economy is walking on a tightrope, and if something isn’t done now, that rope will snap.
