Why the proposal could raise pricesAs Kamala Harris criticizes the plan at the debate

Top line

Former President Donald Trump reiterated his plan to raise tariffs on imported goods during Tuesday night's debate after Vice President Kamala Harris criticized the plan and said it would raise prices, echoing the views of many economists who believe Trump's plan would hurt everyday consumers even though the former president has said otherwise.

Former President Donald Trump arrives to speak at a campaign rally at Mohegan Sun Arena in Casey… [+] Takes place on August 17 in Wilkes-Barre, Pennsylvania.

Copyright 2024 The Associated Press. All rights reserved. Highlights

Trump has proposed raising tariffs, or the taxes on imported goods that companies that import them pay to the U.S. government if he is reelected, doubling down on years of tariffs that he said in a speech Saturday would punish other countries that rip us off and steal our jobs.

While he has not yet committed to a specific policy, the former president has generally proposed raising tariffs on goods imported from China by 10 percent or 60 percent, up from about 1 percent and 11 percent, respectively, currently, according to data from research firm Wolfe Research cited by The Wall Street Journal.

Harris criticized Trump's plan in a speech Friday, saying it was effectively a national sales tax on everyday, essential goods and declaring it a Trump tax on necessities, leading the former president to reinforce his commitment to the tariff policy over the weekend.

Most experts say tariffs raise prices for consumers: The cost of tariffs can be absorbed by a combination of U.S. companies that import goods, customers who buy them, and foreign companies that export them, which could lower their prices to offset the tariffs. But the right-leaning Tax Foundation found that previous tariffs imposed during Trump’s first term were paid for by U.S. companies and consumers.

Goldman Sachs economists led by Ronnie Walker projected that consumer goods prices would rise by 0.1 percent for every percentage increase in the effective tariff rate and would increase inflation rates for a year, noting that in addition to the increase in the price of imported goods, the price of domestic goods would also likely rise as U.S. manufacturers opportunistically raise their prices to take advantage of less competition in the marketplace.

Economists also believe that Trump's proposed tariff plan would hurt the U.S. economy, with an analysis by the nonpartisan think tank Peterson Institute for International Economics (PIIE) concluding that the proposal would hurt the U.S. economy. [inflict] significant collateral damage to the U.S. economy, citing a range of factors including declining consumer spending, rising unemployment and weaker economic growth.

Moody's projected that Trump's tariff plan would result in 675,000 job losses in the US and a 0.4% increase in the unemployment rate, with Moody's chief economist Mark Zandi telling CNN: “If Trump raises tariffs as he has proposed, the economy would likely suffer a recession shortly thereafter.”

Get Forbes Breaking News SMS Alerts: We launch SMS alerts so you’re always on top of the biggest stories making headlines. Send SMS alerts to (201) 335-0739 or sign up here.

Large number

$1,700. That’s the annual cost of Trump’s proposals for middle-class American households, according to PIIE projections. The think tank also estimates that for people in the bottom half of American income brackets, Trump’s proposals would reduce after-tax household income by about 3.5%. The left-leaning Center for American Progress has estimated that the annual cost to middle-class Americans would be $2,500, based on 10% and 60% tariffs on Chinese goods, which it estimates could rise to $3,900 if Trump levied 20% tariffs on most imported goods.

Crucial Quote

No study of Trump’s tariffs has found evidence that the tariffs are lowering prices for U.S. importers, PIIE economists wrote in a May analysis. To the contrary, numerous studies have shown that U.S. tariffs imposed since 2017 have been passed on in full to U.S. buyers.

Chief Critic

“President Trump successfully imposed tariffs on China in his first term AND cut taxes for hardworking Americans here at home, and he will do it again in his second term,” Trump spokeswoman Karoline Leavitt told Forbes in a statement when asked about criticism of Trump’s proposal, saying the former president’s plan would bring millions of jobs and hundreds of billions of dollars back to America from China and criticizing Harris’ policies.

What should you pay attention to?

It’s not yet clear what Trump’s final tariff proposal would look like. While the former president has typically proposed 10% tariffs on all countries other than China, he suggested Wednesday that the tariffs could be even higher, saying in a speech that they could be anywhere from 10% to 20%. It remains to be seen whether any of those tariff increases would be accompanied by tax cuts that would soften the blow to American consumers, and Trump has previously floated the idea of ​​replacing income taxes with tariffs. Trump would likely be able to raise tariffs unilaterally without Congress, the Wall Street Journal notes, arguing that while the former president might have difficulty imposing a 10% tariff on all countries, he could take a more piecemeal approach that would ease logistical challenges. It’s also unclear how other countries would react to a potential increase in Trump’s tariffs and whether they might retaliate against the United States with their own tariffs, as China did after Trump imposed tariffs on it during his first term. Maury Obstfeld, a PIIE fellow and former Obama administration official, told CNN that the conflict could have a destabilizing effect on financial markets, predicting that China would retaliate massively and that other trading partners would be unlikely to accept it without responding.

Contra

While Harris is now attacking Trump’s tariff proposal, the Biden administration has largely kept Trump-era tariffs in place and in May announced new tariffs on Chinese imports that affect $18 billion in goods, blaming China’s unfair trade practices. (Trump’s proposed broad tariffs on China would affect more than $400 billion in imports.) The lingering Trump-era tariffs on Chinese imports have increased the inflation rate by about 0.3%, PIIE found in a 2022 analysis. Eliminating tariffs has been a politically sensitive issue: The Washington Post noted in 2022 that while some in the Biden administration have pushed for tariff reductions, including Treasury Secretary Janet Yellen, labor unions have also pressured President Joe Biden not to lift tariffs, often to boost U.S. competitors. Rust Belt senators Bob Casey (D-Pa.) and Sherrod Brown (D-Ohio) urged Biden to keep the tariffs in place in a 2023 letter, saying removing them would hurt American steel and aluminum producers. Reducing the tariffs would be good for consumers. But there is no political will to roll back the tariffs right now, Obstfeld told CNN.

Key context

Trump has long made tariffs a cornerstone of his trade policy, first raising tariffs in 2018, which sparked a trade war with China, before the two sides reached a trade deal in December 2019. The former president’s move resulted in a six-fold increase in tariffs on Chinese goods compared to before 2018, the PIIE noted, peaking at 21% in January 2020, still well below Trump’s 2024 proposal. Trump’s initial tariffs on products such as washing machines, solar panels, steel and aluminum also applied to countries other than China, but the impact was smaller, with the PIIE reporting that tariffs on other countries increased by an average of 2.2% to 3% between 2018 and 2022. The spat between Trump and Harris over Trump’s tariff proposal comes as Harris unveiled her own economic agenda on Friday, which includes efforts to combat price gouging in grocery stores, high housing costs and prescription drug prices. Trump has attacked Harris’ policy proposals and her efforts to influence prices, with Leavitt telling Forbes that the former president is a businessman who certainly doesn’t need lessons in economics from the radical San Francisco liberal who promotes communist price controls.

Further reading

How Trump's tariff plans could destroy jobs and worsen inflation (CNN)

Specter of Trump Tariffs Looms Over Markets (Wall Street Journal)

Biden, Trump share faith in tariffs, despite inflation risks (Washington Post)

Trump's Views On Social Security And Medicare And Why Experts Say The Funds Could Run Out Faster If He's Elected (Forbes)

Kamala Harris Addresses Economy In SpeechHere's What You Need To Know About Her Policy Agenda (Forbes)

What Is Price Speculation? Here's What You Need to Know About Kamala Harris' Core Economic Policy (Forbes)

Sources 1/ https://Google.com/ 2/ https://www.forbes.com/sites/alisondurkee/2024/09/10/will-trumps-tariffs-raise-prices-what-to-know-as-kamala-harris-slams-policy-at-debate/ The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos