Tariffs to hurt U.S middle class, Donald Trump to hike tax by $2000? Here's what a report states

US president Donald Trump's new tariffs on imports from Mexico, Canada, and China have the potential to deeply affect American families, possibly burdening middle-class households with a yearly tax hike of about $2,000, according to a Common Dreams report.

This would be the largest tax hike in decades, and its impact is likely to be felt the most by low and middle-income Americans, as per an opinion piece written by American economist Dean Baker.

Donald Trump’s reasons for tariffs raise doubts

According to Trump, his tariffs are needed to deal with problems such as fentanyl smuggling and illegal immigration from countries like China, Canada, and Mexico. But Baker wrote that the president's "stated reasons don’t make much sense," as per Common Dreams report.


Canada and Mexico have already started to address the issue of illegal drugs and illegal immigrants through an agreement with former US President Joe Biden, reported Common Dreams. China has also been cooperating with the United States to cut on the flow of precursor substances for making fentanyl, as per the report.

Negotiation over taxes

Baker wrote, "We can look to reduce the flow further, but that could probably be accomplished by negotiations rather than imposing a big tax on US households," according to the report.

Are these tariffs a cover for something else?

According to the economist, Trump's reasoning are not the actual motive for the tariffs. Baker pointed out that the actual motive might be to fill a widening budget deficit created by his tax reduction for the country's richest people, such as Elon Musk.

By raising import taxes, Trump might be passing the burden on to regular American workers instead of addressing the intricacies of his tax cuts for the wealthy, as per Baker's analysis. According to the report, the tariffs can be seen as a means for the administration to compensate for the deficit created by tax reductions provided to the rich.

Baker highlighted an old saying that is popular in Washington in his op-ed, "if you want to understand politicians, look at what they do, not what they say. On that front, there is no ambiguity. Donald Trump is imposing big new taxes, and he is doing it in a way that does not require congressional approval," reported Common Dreams.

FAQs

Why did Trump impose these tariffs?
Trump said that tariffs are needed to fight issues such as fentanyl trafficking and illegal immigration from Mexico, Canada, and China, as per reports.

Can the US solve these issues without the tariffs?
Baker believes that instead of imposing a big tax on American families, the US could likely solve these problems through more diplomatic talks.