A year ago our president declared Liberation Day and raised tariffs on imports across the board. He promised prosperity for all with a better economy and lower deficits. More jobs, more investments and lower prices. This would, he said, “make America wealthy again.”
It’s been a year, so how are we doing? Tariffs initially rose about 10% but with 90-day suspensions, up, down, and reversals there have been more than 50 changes. As a result, business investments and hiring are down when they don’t know what the costs will be.
The trade deficit has not gone down but has risen to an all time high. Manufacturing jobs have dropped, we have lost 100,000 jobs over the past year. Ouch! No help to middle class working folks here.
In reaction to tariffs, many countries raised tariffs on American goods, especially our farmed goods like soybeans, and the farming economy has suffered. So Trump rolled out a $12 billion bailout for farmers. So much for free markets and lower federal deficits.
Tariffs were promised to be a guaranteed money maker for the U.S., but the Wall Street Journal has reported that 95% of tariffs are paid by us Americans. Tariffs “raised” $151 billion, but the Supreme Court ruled that they are illegal taxes and ordered a $161 billion refund. That didn’t help us.
Inflation had been dropping and was down to 2.4%. The latest reports showed that number is steady. After I filled my gas tank last week, I can only dream inflation will stay at 2.4%.
Am I wealthier a year after Liberation Day — with prices higher, inflation sticky, higher deficit, less foreign investment, fewer exports, higher prices for imports? Nope, it hasn’t worked as promised.
F. Bruce Mooers, Salt Lake City