Trump debates Harris on tariffs: Experience vs. policy
- Economic forecasters have historically predicted that tariffs would harm the U.S. economy and raise consumer prices.
- Trump's tariffs are based on economic theory, which supports the idea that tariffs can improve trade terms without significantly raising consumer prices.
- Evidence shows that the actual impact of Trump's tariffs has resulted in minimal price increases for consumers, contradicting earlier predictions.
In an upcoming debate, Donald Trump is expected to leverage his experience regarding tariffs against Kamala Harris. Historically, economic forecasters have warned that tariffs could negatively impact the U.S. economy and increase consumer prices. However, Trump's approach to tariffs is based on economic theory, which suggests that tariffs can be beneficial and may not necessarily lead to higher prices for consumers. Evidence indicates that American firms have only passed a small portion of tariff costs onto consumers, with studies showing minimal price increases for goods subject to tariffs. For instance, a study found that electronics prices rose by only 1.4 percent despite tariffs. Overall, the data suggests that the broader impact of Trump's tariffs has not resulted in significant price hikes for American households, challenging the narrative that tariffs are detrimental to consumers.