Trump’s tariffs … and the lies Democrats tell about them
As an economic conservative, I am opposed to tariffs. In my perfect world, we would have none. Free trade all around. But we do not live in a perfect world.
As he promised over and over during his campaign, President Trump intended to use tariffs as a negotiating tool. He wants to end the historic disadvantage the United States has had in terms of tariffs. According to Trump, America has been getting screwed on tariffs by adversaries and allies alike – and he was determined to do something about it. He did not take a piecemeal approach. He started hitting allies and adversaries across the board with tariffs. In some cases, extraordinarily high tariffs. The tariffs were never intended to remain – merely to provide leverage in negotiations.
Trump’s tariff policy was never about economic isolationism. It was about negotiating from strength. By imposing tariffs on allies and adversaries, Trump signaled that the United States would no longer tolerate lopsided trade relationships. His approach was comprehensive, targeting not just low-level infractions but systemic trade abuses, such as export subsidies, intellectual property theft, and market access restrictions.
Trump’s tariff policies were not just about foreign trade. He saw them as bargaining tools to win concessions on other issues.
Trump’s Objectives
As outlined in his strategy, Trump had three primary goals in terms of tariffs:
- Reduce high foreign tariffs that unfairly penalize U.S. manufacturers.
- Eliminate unfair trade practices, including subsidized exports, bans on imports, eliminating counterfeit goods and address intellectual property theft.
- Secure non-trade concessions — using tariffs to end wars, increase NATO contributions and gain greater geopolitical cooperation.
This multi-pronged effort can be chaotic, but it is starting to yield positive results – without all the downsides predicted by political adversaries. Vietnam has agreed to a 20 percent tariff rate—far lower than the 46 percent Trump initially threatened. The European Union has signaled willingness to accept a 10 percent universal tariff on many exports. These are not signs of economic breakdown, they’re signs of leverage working.
The never-Trumpers have been fighting his tariffs with a barrage of misinformation, disinformation and outright bs.
The Myth of One-to-One Price Hikes
Far from the simplistic narrative that tariffs automatically raise consumer prices or fuel inflation, the reality is more nuanced—and Trump’s predictions have been increasingly supported by recent data and economic behavior. The assumption that tariffs automatically trigger massive price increases and inflation ignores how real-world supply chains and pricing strategies work. Tariffs do not automatically translate into one-for-one price increases. Instead, businesses, distributors, and even foreign exporters often absorb all or much of the cost to remain competitive.
Recent analysis from the Council of Economic Advisers found that the price of imported goods have actually been declining since the latest round of tariffs took effect. Ponder that. Against all the draconian predictions, the retail cost of imported goods has dropped.
And there is more. The imported component of the Personal Consumption Expenditures (PCE) index dropped by 0.1 percent from December through May, while overall goods prices rose only 0.4 percent—a modest 1 percent annualized rate.
This trend is echoed in the Consumer Price Index (CPI), where imported goods fell 0.8 percent while overall prices remained flat. These figures directly contradict the narrative that tariffs are driving inflation and driving up prices in general. Trump’s political adversaries have been wrong about inflation and wrong about price increases – at least so far.
How and Why Businesses Absorb Tariff Costs
So how are prices staying stable despite higher import taxes? The answer lies in business ingenuity and market discipline:
- Front-loading inventory: Many companies pre-ordered goods before tariffs took effect, allowing them to sell at pre-tariff prices for months – and to ride out the temporarily high tariffs.
- Delaying purchases. Conversely, some companies will defer purchases when imposed tariffs are at the highest – anticipating a future reduction.
- Bonded warehouses and trade zones: Importers delay tariff payments by storing goods in special zones until they enter the market.
- Foreign exporters absorbing costs: To maintain market share, some overseas producers lowered their prices to offset tariffs in order to stay competitive.
- Retailers holding prices steady: In a competitive market, many businesses choose to absorb costs rather than risk losing customers.
These strategies have created a buffer against inflation, allowing consumers to continue purchasing goods without dramatic price hikes.
Why would exporters absorb the additional cost of the tariffs? Simple. Because they want to compete in the American market. The size of the American market is what gives Trump considerable leverage in negotiations. Currently, China exports $525.65 billion in goods to the United States. The Chinese economy cannot afford to lose even a portion of the American market without suffering severe economic consequences.
Among the consequences could be the weakening of the Chinese yuan, lower industrial output, factory closings and high unemployment. There would be a massive drop in foreign exchange earnings – especially in such key sectors as electronics, machinery, furniture and apparel. Industries with thin profit margins – such as toys and textiles – would be the hardest hit.
Gas and Energy: A Case Study in Price Stability
One of the most telling examples of price stability is gasoline. According to ABC News, oil prices have dropped nearly 15 percent since Trump took office, helping to cool inflation across multiple sectors. This decline in energy prices has a ripple effect. Lower transportation costs mean lower prices for groceries, consumer goods, and services. It’s a powerful counterbalance to any upward pressure from tariffs. (My own gas price is at the lowest point since Trump took office.)
Inflation Trends Under Trump
Since Trump’s return to office, inflation has consistently declined, defying predictions of economic turmoil. May CPI rose at an annual rate of just 2.4 percent, cooler than economists expected. The PCE index rose 2.3 percent, only slightly above the Federal Reserve’s 2 percent target. Even high-profile categories like eggs, which saw a 53 percent price surge in January, have cooled to 41 percent by May. These figures suggest that inflation is not only under control—but trending downward.
Tariffs: A Rebalancing Act
One of the benefits of tariffs can be the revitalization of the economy by expanding sales of domestic products, job creation and lower unemployment. This possible outcome is influenced by what proportion of the tariffs reach the retail shelves. Since tariffs are being negotiated on almost a daily basis, we cannot yet determine their full impact.
To whatever measure the tariffs make goods more expensive, there is a benefit for domestic production. While Trump’s tariff costs have not yet reached the consumers – and maybe never will – the threat of tariffs appears to have produced some positive investments in American industrial growth. The monthly jobs numbers have been exceeding expectations – and the unemployment rate it at 4.1 percent.
The tariffs have not had a negative impact on the stock market, as many Trump critics have predicted. In fact, it has risen to record highs – fluctuating occasionally based on day-to-day events. But the trend is upward.
A Yale University analysis projects that Trump’s tariffs will boost U.S. manufacturing by 2 percent. While some sectors like agriculture may face short-term challenges, the long-term benefits of a more balanced trade environment are substantial.
President Trump’s tariff policy is not a reckless gamble—it’s a calculated strategy to restore fairness, protect American workers, and rebalance global trade. The evidence is mounting that tariffs have not caused runaway inflation, and in many cases, prices have remained flat or even declined.
By absorbing costs, adjusting supply chains, and negotiating better deals, businesses and foreign partners have adapted. Consumers have not been crushed under the weight of tariffs. Instead, they have benefited from a stronger domestic economy, more jobs and more equitable trade relationships.
Critics of Trump’s tariffs are engaging in political misinformation, disinformation and downright lies. MSNBC’s Lawrence O’Donnell is among the worst of the worst. In his inimitable pompous and arrogant style, he declares that the consumer will pay all the tariff costs. “That is how it works,” he declares. Not so. O’Donnell is an example of the merging of arrogance, ignorance and political deceit. And he is not alone,
Many are calling tariff increases a “national sales tax” as if 100 percent of the tariffs will be passed on to the consumer. It is a grossly false and misleading assumption. Among those proffering that nonsense are Senate Minority Leader Chuck Schumer, Maryland Senator Chris Van Hollen, Maryland Congressman Jamie Raskin and most of the hosts on MSNBC.
Trump’s approach may be unconventional – and a bit chaotic in the short run — but it’s proving to be effective. Tariffs, when used wisely, are not a tax on the American people—they are a tool for economic sovereignty. We do not know what the various tariff deals will look like — or what impact they will have on the economy – but so far, the Trump administration has been right, and his political adversaries have been wrong – very wrong.
So, there ‘tis.
He repeats himself when under stress.
Spoken like a true Dunger
This is Larry’s second run of the same story with a different header. I wonder if Joe paid twice….. Makes response easier….
I often find the longer the rationale, the more tenuous the premise. This is a very long piece. He’s been writing quite a few long ones lately.
Just dealing with the pricing model, I find the author somewhat hypocritical in his statements that price does not follow costs in a direct line, dollar for dollar given previous opposite statements about minimum wage increases. Cost is cost, and in both cases, product cost is being added. Yet, he has said minimum wage with raise price on a one-for-one basis, and now, with tariffs, cost to price is a more nuanced affair as I told him, many times, it would be for minimum wages costs. Or any sudden, cost adders for that matter.
In this case, the cost is tariffs. I agree with the author and had told him the same about raising the minimum wage some time ago. Then, he vehemently refused that argument which he now so embraces. He even called me liar and many other last names. Bad ones. He was mean. Now he wholeheartedly embraces my theory and gives zero credit. Wonder if he still feels each dollar of minimum wage will be compensated for by a dollar in price increase? Bet that rationale would be long…. While I agree that price, especially legacy product price, is not directly affected by cost increases; as I said with minimum wage, it will be affected over time to some extent out to the full value of the cost, and perhaps even beyond. Additionally, food products are more likely to feel the added cost pain sooner. At least that’s how it normally works. Have not noticed it yet in the strawberries, but steak n eggs, fuhgit about it. Prices though the roof. On Trumps watch. After he promised to lower the prices by now. He gets his for free.
I could not find the tariff goals stated by the author as coming from Trump. They do not match the White House Goals. If you listen to Trump, he says different things at different times. The author does not source but says Trump is doing tariffs because:
1. “Reduce high foreign tariffs that unfairly penalize U.S. exports.
2. Eliminate unfair trade practices, including subsidized exports, bans on imports, eliminating counterfeit goods and address intellectual property theft.
3. Secure non-trade concessions — using tariffs to end wars, increase NATO contributions and gain greater geopolitical cooperation.”
Trump, aka, The White House ACTUALLY says: *https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/*
This is very different from what the author states the President states; it’s quite a bit expanded, at minimum. And buried in there might be the real top two reasons Donald J. Trump wants tariffs.
One: because he can do them without anyone in his way, and
Two: as Trump mouthpieces say: “These tariffs are central to President Trump’s plan to reverse the economic damage left by President Biden and put America on a path to a new golden age.”
That’s code words for “The Gilded Age” which is code words for McKinley and the 1890’s. Trump has often waxed poetic about the excesses of The Gilded Age while he conveniently forgets that the expansion was fueled by massive immigration. Lke half of my family, people with nine and thirteen kids. Mark my words: Project 2025 may be the delivered plan but Trump’s dream is a new American Gilded Age. Appropriate since The Gilded Age produced our robber barons, great wealth discrepancies between the classes, boom n bust economy without any Federal protections or controls, and many other things totally Trump today.
And neither the author’s supposed goals, nor the White House stated goals, cover a few of the more whacky goals Trump has stated in public, on the record, like:
– To curtail illegal drugs like Fentanyl coming across the border.
– To get Brazil to end the legal prosecution of Trump’s buddy: Jair Bolsonaro
– To reduce the deficit and balance the budget (see comments re: usage tax)
– To open markets and establish free trade
– Trump has suggested tariffs could generate revenue to offset the cost of child care, thereby allowing more women to enter the workforce. (say wha?)
– In Congress, Trump connected tariffs to protecting “the soul of our country,” associating the policy with patriotism and national well-being. I hear inflation is the soul protector’s kid sister…..
Based on the “plan,” the author sees: “his multi-pronged approach can be chaotic, but it is starting to yield positive results – without all the downsides predicted by political adversaries. Vietnam has agreed to a 20% tariff rate—far lower than the 46% Trump initially threatened. The author applauds that? The European Union has a 15% rate. Only a rube economist would applaud economic chaos like these artificial market tax mandates. He states success as a 20% tariff in Vietnam. And the pinnacle of suck-cess is the author telling you, “Hey, it coulda been worse.” Yeah, and only buy one doll for your kid this year too. And the now everyone is tariffed for more than 10%, Trump’s expected long term floor tariff: that’s as low as she goes boys, 10%, extra in cost that the author can only say: “please King George, can I have some more taxation without representation? And please tariff to stop the fentanyl too. And to get Bonasera off the Brazilian legal hook. Why not tariff Putin to get Snowden back?
I do not see tariffs, or even lower 10% tariffs, as the “positive results” that the author does. Wonder if he thinks raising the minimum wage is now a positive result. Guess we will find out now that 22 States have done it. Red ones too. Oh, yeah, way back when, the British did indeed charge a tax on tea, remember the outcome? The tea tax was not a new tax and the price of tea was actually dropping as they dropped it over the side in protest of taxation without representation. The tea tax was about 20%, always had been, same price as Trump’s Vietnam product tariff tax.
And fact is while prices will not immediately go up, will never go up on a one to one basis, over time the tariffs will most certainly increase the price of products to the American consumer with the resulting Trump-mandated revenues being deposited in the General Fund, just like your income tax revenues and will be spent by Trump in the same manner as he spends our income taxes.
Speaking of goals, remember 90 deals in 90 days? That clock ended July 9th. Trump said he would make potentially dozens of tariff deals before July 9. As of 7/12, only two deals — with the UK and Vietnam. Next, Trump tried to rebrand his new letters as tariff deals. They are not. The clock on the letter is 8/1. To date, trade deal wise, tariffs seem to be a total bust. How many promises, commitments, and plans has he missed or recast? TACO.
The author sees this as progress. I do not. Chaos causes chaos as suppliers and distributors attempt to mitigate the chaos. Things are not being shipped, things are stacking up in duty-free warehouses, pre-purchasing to beat the tariff clocks artificially creates purchasing bubbles, inventory bubbles, all sorts of chaotic effects. The biggest one is a freeze on economic activity waiting for the chaos to end. Hiring, plant expansion, investing, much is slowing down or being diverted.
And now: inflation at 2.1%, just approve the Fed benchmark of 2% (pretty good), jobs down (disaster), unemployment up (a bit) and GDP growth following Trump’s negative first quarter, comes in meh, bolstered by the severe drop in imports. For the 1H of Trump’s “golden age,” GDP growth is 1.5%. Under Biden, 2023 and 2024 1H’s came in at 3%, double the Don. Consumer spending grew at 1.8%; under Biden it grew at 2.8% in 2024. Housing has contracted under both quarters for Trump. Point is there is nothing in our current future, with our current policies to make this better. Tariffs will continue to slow our economy, may even hit a tipping point to strangle it. The author has no good news to dissuade me from that outcome and these policies are restraints on our growth.
But the good news is that if there is bad news, Trump will fire the liar and make up his own good news. He should know that Americans don’t need government data to know when the recession hits. We always know before the government reports the results. And when the government lies and tells us it’s all milk and honey, we know when are being treated like mushrooms, in the dark and fed bullshit. Even when the author prints this stink twice, it does not smell better.
The last time we did tariffs on this scale, we got a Great Depression. I wonder what we will get this time? Is Trump Hoover reincarnated?
AG; imo, based on Turnip lore, think the Gilded Age, under McKinley. Same end result.
Dunger wants us to fail as a nation. Sorry Dunger. We’re not embracing communism.
Wonthe wants us to fail a nation, as humans, as men. Sorry Willie. We’re not embracing racist pig dog NAZI fascism. .
I spell my name: danger, and wee willie won’t.
We aren’t embracing Nazi pigs either. At least we have something in common. Except for the communism.
Yeah right. Secret police disappearing a single demographic to death camp gulags as the final solution. Most often for a fucking $250 fine misdemeanor. Even the communists stood up to that bullshit. Just saying.
What fucking death camps are you talking about? It’s no secret why your shit party is falling apart. Morons and liars are the norm with you “people “.
Bwhaaaat? You claim it’s the most transparent administration in history and the brilliant Willie does not know about the El Salvadorian supermax prison Trump spends our money on to house hundreds of deportees, most of which have never been convicted in court, just by Tramp. We dropped $6M and God knows how much more Trimp is paying the guy. Turnip has sent innocent men there. Trump has sent men potentially only guilty of a $250 boarder jumping misdemeanor. Tarnish has sent hundreds there so far. Is willie a worm, blind and living in shit? How could he not know about this gem of a Trump jail: cecot. How we MAGA —– death camps gulags.
CECOT (Center for Terrorism Confinement) in El Salvador is a controversial mega-prison that has been described as a concentration camp and has faced strong accusations of human rights abuses, including deaths in custody and torture. I use the term “death camp” to describe the extremely harsh and potentially lethal conditions, it’s important to clarify that CECOT’s primary purpose is stated to be a maximum-security facility for detaining individuals suspected of gang membership or related crimes, not for systematically exterminating prisoners in the way that death camps like those in the Holocaust were intended. However, the human rights violations documented within CECOT are severe and raise grave concerns. No one knows if anyone, beyond the ones that Tarpaper reluctantly called back like the gay barber with a butterfly “gang” tattoo may not be a deadly criminal who appears not to be a sex-abusing-trafficking drug deal Heinz MS-57 gang member has ever left this prison alive. Most die in there. And you fund it. On your watch.
And don’t forget your new trick: Trump has started deporting folks to South Sudan. A civil war zone since 2013; Trump’s kind of jail. They don’t speak the language of the country they are being stranded in. No one knows about whether the victims are given any spending money. About a dozen been sent there so far. It’s a test. It’s a trap.
Williewonthe wants us to fail a nation, as humans, as men. Sorry Willie. But cruel and unusual punishment, often for a misdemeanor, is your failure, not mine. We’re not embracing racist pig dog NAZI fascism. I spell my name: danger, and wee willie, a blind worm, can’t.
You do this shit for a $250 misdemeanor for jumping the boarder. Some man. All I can say is FDR thanks you for making Manzanar look compassionate. He is at peace now, thanks to your horror show.
These are real people. Some are just our lawnmowers, burger flippers, house painters and the like. Sure, they jumped the boarder for a bigger, better, deal, called the American dream. They work, pay taxes, follow all laws except this misdemeanor. And you send them to CECOT or South Sudan. God will meter out the rewards. But America is forever tarnished.
Hey Dunger. Don’t do the crime if they can’t do the time. My state has prisons that aren’t exactly Boy Scout camps. But if they come here legally and don’t engage in crimes everything will be all right. But these gang members and human trafficking assholes get no sympathy from me. I know. You’re going to claim that they are decent people and mean no harm. Well why don’t you take some of them into your home. Your daughter might learn a few things. No offense, but these people are dangerous and have been proven to engage in human trafficking.
Hammon: oh come on, don’t be a complete idiot.
Your state prisons? Cecot? What a dumbass comparison. Why don’t you look at cecot before you defend them. There’s no comparison, even if you’re from Louisiana. Your prisons are AAA rated club meds compared to cecot. Here’s a buck, buy a clue.
How many times have I said: arrest the criminals, don’t fret the budget to do so, punish to full extent. What jerkvwould say different. .
Do you really feel the same vigor needed for a $250 misdemeanor for boarder jumping is reasonable. What’s next, the rack for a parking violation? But to do it with cruel, unusual, punishment involving torture and murder; that’s on you, I don’t support it. .
And for either case, but especially the $250 misdemeanor; does America send them to a third wirld death camp gulags much less fund it’s existence? Without a trial?
That’s unAmerican, stupid as shit, and we have shed blood to establish and protect those rights. We use the law, the courts, due process , not secret police disappearances like NAZI fascist pigs.
Why do you pervs have a thing for my nonexistent daughter? It’s just Epstein creepy. You’re just being gross and sick. Makes me want to vomit. You make me sick. Yech.
Dunger you don’t object to any law breaking by your cronies. It’s all about votes. Every day we hear about children being assaulted by illegals. Gotta love em. Your party does.
Boring: I spell my fake name: Danger. Be the gentleman that I know you can be, and not the childish bully that you seem to be here and have the respect deserved by any human you talk to. Or continue to be the jerkwad.
I have objected to all lawbreaking, by anyone, and have applauded our past when we were a nation founded on an idea, not a King, and that idea was “the rule of law.” More children are assaulted by citizens than illegals. Perhaps you love them, I say convict them and punish to the full extent of the law. You would be a complete idiot to think I think differently. Don’t see what your profit is in lying like that.
Wish you people had the balls to stick to issues and avoid just attacking me to bring some joy to what must be your miserable lives if this is what picks you up.
Now about those tariffs —- hey, Trump got a win today: Apple will increase US investment by 20% or $100B. Trump gets bragging rights, you get few jobs, probably mostly college types get the jobs and a more expensive iPhone, oh joy. It will take 4 years, so can change easily once Trump gone, will add 20,000 or 5,000 workers a year. It will be smart plants, so good luck getting a job without a degree, but us college types will like that. Today about 50% of factory workers have degrees, and I expect that trend goes up, not down. And domestic manufacturing, according to Apple, doubles the cost. Trump wins though. Makes for great TV.
Dunger is a Communist.
With all the Tariff tax money being collected when the imports occur; where is all the money going. Is it to the US Industries and US Farmers that were hurt by unfair trade? We never hear about that. Just like Trumps relationship with Epstein. I bet it goes to Trump, Trump Family, his DC Mafia family and his Billionaire supporters.
If Biden did this; you would be all over him for accepting bribes and all after Hunter Biden for using his Dad’s name. Oh yeah, there were congressional investigations on that. Not Trump when he openly accepts bribes.
What about the billions of dollars going to Trump’s many foundations by corporations just so they can continue doing business. That is MAFIA TRUMP! Trump is a Fascist and a Communist at the same time. Radical from both ends.