Trump's Terrible Tariff Troubles: To Get Worse With Huge Consumer Price (Tax) Hikes

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

I note this reminder from Wilbur Ross awhile back from this article on this subject:

•  Ross dismissed fears about the effects of President Donald Trump's trade war on American consumers.

•  Ross said: “Nobody's going to actually notice it at the end of the day” (re: possible price increases from tariffs on imported Chinese goods).

The raw arrogance of Trump and Ross - mind-boggling to say the least.

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.

My 2 cents: All this from the brilliant, best ever, most-successful (his own evaluation even with  tons of failures) the businessman who then became a  TV reality show host to now is our president. One-man show squarely on the job and on the ball, right? 

How about a reminder of what so many forgot or never knew — oops...!!!

[Click image to enlarge]

Now more like the current TV commercial says: “What’s in your wallet?” 

The short answer thanks to Trump: Not much. 

BTW: People like him or the billionaire Commerce Secretary Wilbur Ross – well they are so rich they don’t give a damn about paying higher prices for anything (and they don’t shop at Walmart or Target, either). 

So, the more pricey and luxurious for them, so what; no biggie. Just a better product and showmanship and slick PR that favors them and their ultra-rich BFF’s.  

Ross’s has a shady past with Trump, too. He helped bail out Trump with his failed Casino projects. Those guys are all joined at the wallet. 

Related: The story on the 2^nd Trump-GOP tax cut now in the works … and his plan to make some of it permanent here from The AP. 

Thanks for stopping by.