Trump promised voters tariffs are a panacea for the economy, but Walmart finance chief John David Rainey warned they will be inflationary for customers.
Realistically though, that’s how tariffs just work. With products costing more, theoretically that should drive demand down and eventually lead to fewer imports. Of course, if there’s still no competing product or the product is a basic necessity, then it’ll likely just result in people paying more.
Realistically though, that’s how tariffs just work. With products costing more, theoretically that should drive demand down and eventually lead to fewer imports. Of course, if there’s still no competing product or the product is a basic necessity, then it’ll likely just result in people paying more.
We tried this in 2017. Trump put tariffs on dishwashers, and American companies just raised their prices to match, pocketing the difference.