80-year old billionaire & Trump pal Commerce Secretary
(Wilbur “Chicken Soup Fan” Ross)
This story now on top of the second Trump tax cut proposal now pending is the tariff tax hike about to hit consumers hard. Story here with the headlines:
The Trump consumer tax could be permanent
for many products
On September 24, over 5,700 goods imported from China will be hit with a 10% tariff tax and unlike previous tariffs, many of these items are things directly sold to consumers instead of steel, aluminum, and raw materials (Trump’s original target), But things like luggage and seafood and toys and electronics, yes, even clothing. By the end of the year, that tax will rise to 25%.
Some analysts speculate that some (a few at least) companies will choose not to pass on price hikes to consumers, instead taking a hit on their margins to perhaps gain more market share of the items impacted; but consumers are expected to foot the bill larger overall; not the companies, and certainly not China.
But not every market experiences the robust competition necessary to provide the downward pressure to push prices back to pre-tariff levels.
In some of the 5,745 product categories defined, consumers will doubtless experience inflation as pre-tariff prices fail to return.
If prices do not fall after tariffs are removed, the tariffs will have come at a much higher price than advertised: A permanent price (tax) hike.