President Donald Trump tweeted Sunday morning that his tariffs are “working big time” and made a bizarre claim that the money raised from these new import taxes will go a long way to helping pay down America’s large debt. (Short answer: That’s not what will happen).
Trump portrays the tariffs as a tax on foreigners, but the reality is that tariffs are taxes on U.S. companies and consumers. When a big U.S. retail chain or an equipment manufacturer has to pay 10 or 25 percent more to get steel from Canada or a certain part from China, that U.S. company has to pay the tax when it imports that item. U.S. businesses either eat that extra cost or pass it along to consumers.
There are already signs that prices are …
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