MeidasTouch host Ben Meiselas reports on Donald Trump panicking on Sunday as his own officials like Howard Lutnick are unable to defend his destruction.
Trump has repeatedly claimed that tariffs on China and other countries help the U.S. economy, but many economists argue that this is misleading. Here’s a breakdown of the biggest lies or misconceptions Trump has told about tariffs:
🔴 Lie #1: “China is paying the tariffs”
✅ The Truth: U.S. businesses and consumers—not China—pay for the tariffs.
- A tariff is a tax on imported goods, meaning U.S. importers pay the tax, not the foreign country.
- Businesses pass these costs to American consumers by raising prices.
- Studies show over 90% of the tariff costs were paid by U.S. companies and consumers, not China.
📊 Example:
- A 25% tariff on Chinese steel means U.S. companies pay 25% more for that steel, leading to higher prices for cars, appliances, and buildings.
- Farmers lost billions when China retaliated, cutting purchases of U.S. crops.
🔴 Lie #2: “Tariffs made the U.S. economy stronger”
✅ The Truth: Tariffs hurt key industries like agriculture and manufacturing.
- Trump’s China tariffs triggered a trade war, causing U.S. farmers to lose major export markets.
- The government had to bail out U.S. farmers with $28 billion in subsidies.
- Manufacturing job growth slowed because businesses faced higher material costs.
📊 Example:
- Farmers who sold soybeans to China saw exports collapse, forcing them to rely on government aid.
- Harley-Davidson moved some production overseas due to European tariffs imposed in response to Trump’s trade war.
🔴 Lie #3: “The U.S. made billions off tariffs”
✅ The Truth: The U.S. government collected more tariff revenue, but it was paid by Americans, not foreign governments.
- Tariffs are taxes on American importers, which means the government collected more money—but it came from U.S. businesses and consumers.
- Higher prices on goods like electronics, clothes, and cars hurt middle-class Americans the most.
📊 Example:
- A study found that Trump’s tariffs cost the average U.S. household $1,300 per year in higher prices.
⚖️ The Bottom Line: Did Tariffs Work?
🔹 Some industries (like steel) benefited short-term, but overall, the tariffs:
- Hurt American consumers with higher prices.
- Hurt farmers who lost access to export markets.
- Failed to bring back significant manufacturing jobs.
- Increased the national debt due to bailouts.
Would you like a comparison of Trump’s tariffs vs. Biden’s trade policies? 📊
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