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It is expected that President Trump’s sweeping tariff will raise the cost of cars, electronics, minerals, wood, pharmaceutical preparations and other products that consumers and American companies buy from abroad.
But Mr. Trump and his advisers are betting that they can sell a high -ranking audience on a provocative idea: cheap things are not the American dream.
“I could not care less if they raised prices, because people will start buying US -made cars,” Mr. Trump He said in the NBC program for the press program On Sunday, in response to fears of foreign cars affiliated.
The idea that there is more in life than low -cost imports is to admit that the customs tariff can impose additional costs on Americans. It is also a stadium that the burden is worth it. Mr. Trump’s ability to persuade consumers that it is acceptable to push more to support local manufacturing and adhere to his agenda, “America First”, can determine whether the second president’s mandate is success or disaster.
But it is not an easy sale. Definition attack ROILED markets Consumer confidence was wounded. The automatic definitions that enter into force on Thursday will add a 25 percent tax to auto imports and auto parts. Raising prices in the sector. Mr. Trump has already imposed 20 percent definitions on Chinese goods and more expected later this week, when the president declares his “mutual” definitions on the main commercial partners, including those in Asia and Europe.
In the face of anxiety about the incredion, Mr. Trump and his economic assistants resorted to the American demanding to think about the largest image. They adopt the opinion that Mr. Trump’s commercial wars are necessary to correct contracts of economic injustice and that payment is a little more than a matter of national pride.
“We may have, in the short term, simple pain,” said Mr. Trump last month, revealing the definitions of customs tariffs in Canada and Mexico. “People understand that.”
Treasury Secretary Scott Payette laid out frankly earlier this month when he retracted the idea that inexpensive products should be what Americans aspire to. He said in a letter to the New York Economic Club: “Access to cheap goods is not the essence of the American dream.”
Mr. Pesin, a former investor in the hedge fund, which is worth hundreds of millions of dollars, stressed this point in a follow -up interview on NBC, on the pretext that prosperity is not related to the purchase of “jewelry from China”.
He said: “The American dream is not” let them eat flat screens “, on the pretext that it is about good jobs that are not lost in foreign competition and high wages enough to provide homes.
The comments renewed a discussion within the Republican Party on the advantages of the commercial barriers that have in recent years marginalized the traditional conservatives who are given free trade. Former Vice President Mike Pines has returned to Mr. Pesin, stressing social media that the Treasury Secretary offends the aspirations of the Americans.
“The definitions are good as a way to bring countries like China to the table, but free trade reduces the costs of goods and improves the quality of life for every American,” Mr. Pence wrote on the social media platform x.
Fears about economic practices in China have inspired Republicans and Democrats. But it remains divided into the best way to combat excessive Chinese industrial capacity and throw cheap goods around the world.
While the Biden Administration tried to confront this dynamic through targeted tariffs and federal benefits to clean energy technology and semi -conductors, the Trump administration begins an industrial strategy based on a large -scale tariff and tax discounts.
But the start of random tariffs and the fact that any changes to the tax law will only occur later this year economists, trade experts and analysts wondering about the feasibility of Mr. Trump’s strategy and doubt that his administration can convince consumers that they are better in prices.
“My bet will be that people will not be ready to swallow higher prices, decrease 401 (k), and less wealth against the principle of national economy,” said Stephen Haber, a professor and colleague at the Stanford Institute for Economic Policy Research and the Hoover. “The reality tends to the ideological Trump for most people.”
Mr. Haber recalled that in the seventies of the last century, President Jimmy Carter appealed to the Americans to embrace austerity as the nation tried to combat inflation, and it has proven difficult to tempt the country to adopt the hardship imposed on the self. The economic pain was unpopular and Mr. Carter served only one period.
To the skeptical of Mr. Trump’s approach, it seems that the customs tariff drama is an emergency of the president.
Economic investigative studies have shown that Americans are ready to spend more to “buy America” in some cases, but only somewhat. The timing of Mr. Trump’s introductory initiatives is particularly fraught with risk because his victory last November was partly due to the deep frustration that the Americans felt after years of prices high during the Biden administration.
Barry B. Bosworth, who led the “GCC” in the Carter Administration from 1977 to 1979, is believed to be difficult for Mr. Trump to sell Americans in policies that could increase prices, taking into account that the economy inherited by Mr. Trump was relatively healthy.
“I think the Trump administration will make a mistake if they do not realize that they won the elections in a large part of it because of the inflation experience in the Biden administration,” said Mr. Busworth.
Supporters of the commercial strategy of Mr. Trump were low during his first term, and that the customs tariff is part of a wider agenda of tax cuts and the abolition of regulatory restrictions that could reinforce the theoretical economy.
Thomas J. Philipson, who held the position of Speaker of Economic Advisors during the term of Mr. Trump: “The customs tariff policy is not a small part of the comprehensive policy.” It believes that the benefits of tax cuts and the abolition of organizational restrictions will outperform the impact of definitions.
Although Mr. Bessent recently emphasized that the decrease in American industrial capacity has eroded America’s wealth, he presented similar arguments last year as a consultant to Mr. Trump.
“While many economists referred to the total efficiency gains associated with disabling this work, the cheapest games and TVs were not little compensation for the loss of reliable profits and the meaning that the work brings to people’s lives,” Mr. Pisint said at a conference last October.
At the Economic Club in New York in March, Mr. Pesin referred to a conversation Ticket This has been found that the societies that have been subjected to the most beautiful efforts have been recovered in recent decades, but manufacturing workers who have lost their jobs have not fully recovered their profits.
One of the authors of the study, the economist, said the Massachusetts Institute of Knnn over and said that protecting some industries from foreign competition and investing in them may be a wise approach.
However, Mr. O version was not convinced that Mr. Trump’s economic policies would achieve what he aims to achieve. He referred to the planned cuts to federal spending and investment benefits, which are mostly benefiting from the governorate countries. He said that the tariff of Mr. Trump will be “incredibly devastating” for American companies and noticed that the fees imposed during his first term did not have a little economic benefit.
“I think Trump’s policies will currently be more harmful to his components,” said Mr. Outor.
