The Hidden Genius of Trump’s Tariffs
The left just doesn’t understand the 47th President or his MAGA Movement. Democrats refuse to listen to the American public, and the left continues to try and lecture and talk down to the people of the country. While Trump’s opposition has tried since he came into power to weaken him by talking about the price of eggs and other goods rising that he has no control over, the President has only been in office for months.
The Biden administration and the Fed both failed miserably to properly assess inflationary risks or to manage price increases correctly. Fed Chairman Powell’s interest rate increases have not led to prices falling, and the competent previous administration’s efforts to bring down inflation were predictably unsuccessful as well. Both the Fed and Biden constantly described inflation as being transitory. There is also obviously a significant difference between stopping the rate of inflation and getting prices to meaningfully fall. Most Americans have very few assets investing in the stock market, these people are far more impacted by everyday food and gas prices then by moves in equities or bonds.
This is why the hidden genius to Trump’s recent announcement of tariffs is that the President is doing the Fed’s job for him. One short-term impact of Trump’s action is that he is bringing prices down while only slightly slowing growth in the near term to reach better long-term trade agreements that will bolster the US economy for decades to come. The President is giving the Fed more flexibility to lower rates by bringing oil and other commodity prices down. The price of oil has fallen by 17 percent in just the last week. Energy costs are embedded throughout the US economy since most goods are obviously transported to the final selling point. Despite the absurd claims by JP Morgan CEO and longtime Democrat Jamie Dimon, Trump’s tariffs are clearly not inflationary. In addition to oil and other commodities selling off, most companies impacted by tariffs will not be able to raise prices significantly since competitors less affected by the President’s actions can just undercut them.
Both Democrats and Republicans agree that the biggest issue hurting the average American is high prices. While Trump’s tariffs will have no negative impact on the economy over the long term, his actions may cause growth to slow for the next month, which combined with the sell-off in commodities should lead to meaningfully lower prices. The President has timed his action perfectly both to lower prices and force countries such as China to face financial hardship at a time when the global economy has already been slowing for some time.
The number one issue Trump ran on was getting prices under control and rebuilding the economy for middle and working-class Americans. While the President has many long-term goals centered on bringing manufacturing and more additional jobs back to the country, Trump’s tariffs are doing in the short-term what the Federal Reserve has been unable to do for nearly 3 years, they are bringing down prices in an orderly and responsible fashion. Trump has always had a good sense of timing, and his announcement of recent reciprocal tariffs is yet another example of how the 47th President is a step ahead of his opposition.
