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🚨🇺🇸 HASSETT: TARIFFS WORK BECAUSE OTHER COUNTRIES PANIC FIRST When Trump threatens tariffs and other countries suddenly scramble, that tells you who actually eats the cost. Not the U.S. consumer. The exporters who can’t afford to lose access. Tariffs as leverage only look dumb if they don’t work. The...

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Trump claims tariffs will make America rich again, but that’s not how it works. Tariffs aren’t paid by other countries—they’re paid by Americans. It’s not a tax on countries like China; it’s a tax on the stuff we buy. Here’s how it works: when the government puts a tariff on something, it raises the price of that product. The idea is to make imported goods more expensive so people buy American-made products instead. Sounds good, right? The problem is, most things we use in the U.S. are made overseas, and it would take years—or even decades—to make them here. And in some cases, it might never happen because it costs too much to produce those goods locally. For example, if something costs $50 and a tariff adds $5, the new price is $55. That extra cost comes out of your pocket. This can cause inflation, making everything more expensive, and people either stop buying or have to spend more because there are no cheaper options. So, who gets the money from tariffs? The U.S. government collects it, but it’s not paid by China or any other country. It’s paid by you—the American consumer. The U.S. can’t tax other countries directly, so the burden falls on taxpayers here. Tariffs can work if the product being taxed is already made in the U.S. For example, if China floods the market with super-cheap goods that hurt local manufacturers, tariffs can make those imports more expensive, giving American businesses a chance to compete. But slapping tariffs on goods we don’t make here—or won’t make for years—just makes things more expensive for everyone. That’s why no president has wanted to be known as a "tariff president." They knew tariffs are really just taxes on Americans and can backfire politically. If tariffs drive up prices and hurt voters’ wallets, it could mean big trouble in the next election. Republicans might certainly lose in 2026.

Simon Ateba

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