Donald Trump has once again wielded the economic club as a political weapon. With the proclamation of his so-called “Liberation Day,” he has announced a new tariff package: a blanket 10% on all imports, alongside even harsher “reciprocal” duties. What he frames as a crusade for industrial sovereignty is, in truth, a recipe for rising prices, broken alliances, and growing hardship for the average American.
The Myth That “Others Pay”
Trump claims that tariffs hurt foreign governments. The National Bureau of Economic Research and the U.S. International Trade Commission have confirmed that over 96% of U.S. tariff costs are directly paid by American consumers and businesses—not China or Mexico.
According to the Tax Foundation, during his first term, tariffs on China and other nations cost American households between $800 and $1,000 more per year. This new package could double or even triple that figure, as it targets more than $3.8 trillion in imported goods—the total value of U.S. imports in 2024.
What Will Americans Pay?
According to the Peterson Institute for International Economics:
- The average price of a new car would rise by $1,300.
- Imported clothing could increase in price by up to 20%.
- Primarily sourced from Latin America, coffee may increase by 12% to 18%.
- Electronics such as phones, tablets, and laptops could cost up to $120 more per unit.
These impacts will hit working- and middle-class families the hardest, especially in southern and midwestern states, where wages are lower, and household consumption of imported goods is higher.
A Blow to Jobs and Growth
Far from bringing jobs back, Trump’s tariffs have led to layoffs and closures. During the 2018–2020 trade war:
- At least 245,000 net jobs were lost, according to Moody’s Analytics.
- Foreign direct investment in the U.S. fell by 37%.
- Agriculture, auto, and tech sectors suffered losses exceeding $100 billion.
- The Congressional Budget Office warns that this new tariff wave could cut U.S. GDP growth by 1.6% annually and increase the risk of a 2025–2026 recession.
Supporters of protectionist measures argue they are necessary to reduce trade deficits and shield domestic industries. However, in Trump’s case, the deficit persisted — even grew — and the much-touted reshoring of industry never materialized beyond a few symbolic wins.
Damaging Strategic Alliances
The harm isn’t just domestic. France, Japan, and Canada have already threatened retaliation and investment suspensions. China has opened consultations with the WTO, and Brazil and the European Union are seeking alternative trade routes.
Mexico — the United States’ top trading partner — will be hit hard, especially in critical sectors like automotive, electronics, and agriculture. Millions of jobs across North America depend on integrated supply chains. By weaponizing trade policy, the U.S. is pushing its allies toward rival spheres of influence — notably China’s.
The Surplus Illusion
Trump has claimed tariffs will generate “hundreds of billions” in revenue for the Treasury. According to U.S. Customs and Border Protection, total tariff revenue from 2018 to 2023 was just $158 billion—a drop in the bucket compared to the $1.7 trillion federal deficit in 2024. Much of that revenue was offset by bailout payments to farmers and subsidies to industries affected by his own policies.
The Working American Always Pays
This is not a show of strength. It’s economic self-sabotage. Tariffs do not bring jobs home or strengthen the economy. They raise costs, reduce competitiveness, and leave working Americans more vulnerable, isolated, and in debt.
America needs strategy, not impulse, smart trade, not trade wars. If there is any “liberation” in this new chapter, it is from the illusion that Trump is protecting ordinary citizens. The reality is far starker: He pushes them to the edge of economic ruin.
What does the average American gain from this? Nothing. Absolutely nothing — except more inflation, uncertainty, and a growing gap between patriotic rhetoric and economic reality.
There is nothing more expensive than a leader with a crusader complex. Trump has confused economic nationalism with punitive isolationism, and the working American will foot the bill. Neither he nor his supporters seem to grasp that the U.S. doesn’t need more walls, physical or economic. It needs smart bridges, renewed alliances, and a trade policy rooted in data, not ego.
If America is to become great again, it must start by protecting the people who truly uphold it: the working people.
Jose E. Urioste
For Times Media Mexico – The Yucatan Times
April 04, 2025
Merida Yucatan, Mexico
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José E. Urioste is a Yucatecan entrepreneur and columnist. He is the major stakeholder in one of Mexico’s longest-standing financial institutions, as well as a shareholder in various ventures across mass media, real estate, and other strategic sectors, and a published author. As a political analyst and writer on philosophical and humanistic subjects, his work challenges conventional thinking with clarity and depth. His contributions to national media offer a distinctive voice on the social, business, and cultural issues shaping the public conversation.
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