White House Press Secretary Karoline Leavitt recently claimed that President Donald Trump’s tariffs are actually a “tax cut for Americans.” Her statement, made during a tense press conference, immediately sparked debate. One Associated Press (AP) reporter challenged her, questioning whether she understood how tariffs work.
“Tariffs are a tax cut for the American people” — Karoline Leavitt turns reality upside down, then gets mad at an AP reporter after he pushes back pic.twitter.com/LMpTueg4Jd
— Aaron Rupar (@atrupar) March 11, 2025
To understand this controversy, we need to break down what tariffs are. Tariffs are taxes placed on goods imported from other countries. When the U.S. imposes tariffs, businesses that import products from different countries must pay extra money to the U.S. government. In response, these businesses often increase prices to cover the additional cost, meaning American consumers pay more for those products.
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For example, if a tariff is placed on steel from China, American companies that buy Chinese steel will have to pay more. They might charge customers more for products made with that steel, such as cars or appliances, to keep their profits. This means that, in reality, tariffs often lead to higher prices for American consumers, not lower ones.
During the press briefing, the AP reporter asked Leavitt whether she had ever personally paid a tariff. The question was meant to highlight that tariffs don’t directly affect foreign countries in the way she claimed. Instead, they are charged to U.S. importers, who then pass the cost onto American businesses and consumers.
Leavitt pushed back, insisting that tariffs are not tax hikes but a way to “stop foreign countries from ripping us off.” She argued they would lead to “fair and balanced trade” and help the U.S. economy grow. When the reporter continued to challenge her, she became visibly frustrated and accused him of trying to test her knowledge of economics. She concluded the exchange by saying, “I now regret giving a question to the Associated Press.”
The White House has also criticized AP for refusing to use President Trump’s newly preferred name for the Gulf of Mexico, which he calls the “Gulf of America.” According to the administration, any media outlet that refuses to use this name is spreading “lies.” AP’s senior vice president, Julie Pace, sent a letter to White House Chief of Staff Susie Wiles, strongly criticizing these actions. Pace argued that blocking journalists from events as punishment for their reporting violates the First Amendment, which protects freedom of the press.
Studies have shown that tariffs often increase consumer prices, hurting lower-income families the most. A report by the Congressional Budget Office found that tariffs imposed during Trump’s first term cost the average American household hundreds of dollars per year due to increased prices on everyday goods.
Additionally, tariffs can lead to trade wars. When one country imposes tariffs, other countries often retaliate by placing tariffs on American goods. This can hurt U.S. businesses that rely on exports, such as farmers and manufacturers.
Featured image via Screengrab
