Say it with me:
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Tariffs are taxes.
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Tariffs are import taxes.
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Tariffs are import taxes paid by American businesses.
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Tariffs are import taxes paid by American businesses that are passed on to American consumers.
According to an analysis by the Tax Foundation, Trump’s tariffs announced on April 2 will result in a $3.1 trillion tax increase over ten years.
Per household, it’s an extra $2,100 in 2025 alone.
It will hit middle-income households hard where discretionary spending is already tight.
Families will make cuts:
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Skip buying new shoes for the kids
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Put off appliance replacements
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Cancel small luxuries and services
These cuts cascade through the economy. You don’t just invent $2,100. You slash your spending somewhere.
Yes, tariffs might incentivize some domestic production. However, the cost per job created is astronomical, making this an incredibly inefficient way to create jobs.
It’s hard to believe that a Republican president has unilaterally implemented one of the largest tax increases in American history. These tariffs exceed those from the 1930s before the Great Depression and triggered the most significant single-day stock market decline since the pandemic of 2020.
Want the entire analysis? Watch Episode 430 of The Accounting Podcast, “The Crazy Calc of Trump’s Tariffs & How to Make Fake Receipts With AI.”
