“Your point was that taking $60B from overseas and spending it in the US of A would unleash untold inflation.”
Nope, I didn’t give an opinion. I asked what it might do for inflation.
Trump has several ‘ideas’ that might effect inflation
this is another one
Look up ref. 5
Donald Trump is proposing large-scale tariffs on Chinese goods. Specifically, he has confirmed plans to impose tariffs of 60% or higher on Chinese imports if he wins a second term as president[2]. This represents a significant escalation from the tariffs implemented during his first term, which totaled $250 billion on Chinese imports[2].
The proposed tariffs would likely have a substantial impact on inflation and the overall economy:
1. Consumer costs: The Peterson Institute for International Economics estimates that Trump's proposed tariffs could cost consumers at least $500 billion annually, or 1.8% of GDP[3]. This would likely lead to higher prices for a wide range of goods, contributing to inflation.
2. Economic impact: Researchers warn that the actual economic damage could be twice as high when accounting for foreign retaliation, slower economic growth, and lost competitiveness[3].
3. Job losses: Previous tariffs on Chinese goods failed to produce more jobs and in some cases had a negative effect on employment[4]. A similar outcome could be expected with these new, higher tariffs.
4. Trade reduction: It's estimated that a 60% tariff would reduce imports from China by about 85%[5]. This significant reduction in trade could disrupt supply chains and potentially lead to shortages of certain goods, further driving up prices.
5. Revenue implications: While the tariffs might generate some revenue, the actual amount is uncertain due to the expected reduction in trade. Estimates range from generating $300 billion to losing $50 billion over a decade, depending on how imports are replaced[5].
Overall, while the stated goal of these tariffs is to protect American workers and industries, they are likely to result in higher prices for consumers, potentially exacerbating inflation.
