this post was submitted on 04 Feb 2025
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Economics

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Trump wants to tax the world (www.politico.eu)
submitted 2 days ago by [email protected] to c/economics
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Summary

Donald Trump is pushing for high tariffs, not just to cut trade deficits but also as a revenue source to reduce domestic income taxes.

His administration envisions a return to 19th-century tariff-funded governance, but critics warn this won’t generate enough revenue and risks harming the economy.

Economists argue free trade benefits the U.S. more than protectionism, and tariffs could backfire by raising consumer prices and reducing trade.

If enacted, Trump's plan may isolate the U.S. economically while empowering global rivals like China.

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[–] slazer2au 2 points 2 days ago (1 children)

as a revenue source to reduce domestic income taxes.

But only for high income brackets.

Otherwise he will increase your taxes again.

[–] MutilationWave 1 points 2 days ago* (last edited 2 days ago)

Any tariffs introduced by Trump are a de-facto tax on the citizens who buy the product that is under tariff. It is, by its nature, a regressive tax because higher earners do not pay more than the poor.