Since before his election, President Trump has been threatening to impose tariffs on Canada and Mexico. While the tariffs were not imposed on day one of his administration, Trump said this week that they would go into effect on February 1, which is Saturday. The other countries, meanwhile, have threatened to retaliate with their own tariffs.
A study released this week showed how much Americans might pay should the tariffs be imposed.
The Tax Foundation released numbers showing that the tariffs would be costly.
We estimate Trump’s 25% tariffs on Canada and Mexico and 10% tariffs on China will:
🔹 Increase taxes by $1.2T (2025-2034)
🔹 Reduce GDP by 0.4%
🔹 Reduce employment by 344k jobs
🔹 Result in an average tax increase of $830 per US household (2025)https://t.co/uWYL5UXfgL— Tax Foundation (@TaxFoundation) January 31, 2025
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“We estimate the 25 percent tariffs on Canada and Mexico and 10 percent tariffs on China proposed to go into effect as early as February 1, 2025, would shrink economic output by 0.4 percent and increase taxes by $1.2 trillion between 2025 and 2034 on a conventional basis, amounting to an average tax increase of more than $830 per US household in 2025,” The Tax Foundation said. “The tariffs on Canada and Mexico alone would increase taxes by $958 billion between 2025 and 2034 on a conventional basis.”
The Foundation also stated that Trump’s first presidency, with its earlier tariffs, imposed “$80 billion worth of new taxes on Americans.”
After an election in which inflation was a big part of Trump’s victory, he’s now pushing a course of action which are likely to cause prices to rise further.
Also arguing against the tariffs was the Wall Street Journal Editorial page. While reliably conservative and mostly pro-Trump, the WSJ page has long been in favor of free trade. The Journal called Trump’s move “the dumbest trade war in history,” in an editorial published Saturday. The paper attacked Trump for placing tariffs on friendly countries.
Really solid WSJ editorial (not just bc I’m quoted) on possible Canada/Mexico tariffs: “The Dumbest Trade War in History” https://t.co/zlIgwA7DJv pic.twitter.com/aNwVIVBHG6
— Scott Lincicome (@scottlincicome) February 1, 2025
“This reminds us of the old Bernard Lewis joke that it’s risky to be America’s enemy but it can be fatal to be its friend,” the Journal said in the staff editorial. The Journal also criticized the administration’s rationale for the tariffs, which is that the two countries have let illegal drugs in over the borders.
“Drugs have flowed into the U.S. for decades, and will continue to do so as long as Americans keep using them. Neither country can stop it,” the Journal said.
Photo courtesy of the Political Tribune media library.
