Comment by kastbort2021 on 01/02/2025 at 23:24 UTC

18 upvotes, 2 direct replies (showing 2)

View submission: Trump slaps tariffs on Canada, Mexico, China, risking higher prices for U.S. consumers

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One theory is that he actually wants to abolish a bunch of taxes, and will try to use tariffs as a replacement.

So, in other words, less taxes for the rich and big business - paid by the American consumer.

One other consequence of this is that it might wipe out small and medium businesses that did not, and do not, have the capital to plan ahead. Now they'll face higher inventory costs, which might lead to less customers and canceled contracts.

Meanwhile big business have spent the past year stocking up, and have the capital reserve to outcompete those that don't have. So now they can pick up those small- and medium business for cheap.

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Comment by mikey-likes_it at 01/02/2025 at 23:30 UTC

14 upvotes, 1 direct replies

it would be a regressive consumption tax that would hurt the working class the most.

Comment by SirBobPeel at 02/02/2025 at 00:04 UTC

2 upvotes, 0 direct replies

Another theory is he and his rich friends want to make the price of stocks plunge so they can buy them up cheap.