Podcast from IVN

Earlier this year, President Trump imposed tariffs on Canada, Mexico, and China, claiming they would fix trade imbalances and protect jobs. However, instead of helping American workers, these tariffs act as hidden taxes; they drive up costs and feed inflation. While average Americans bear the brunt of higher prices and lost jobs, the wealthy are insulated from the worst effects.

Many economists assert that tariffs are stealth taxes, that is, the burden is not distributed equally—while corporations may adjust by diversifying suppliers or passing costs along, working households cannot escape higher prices on essential goods like groceries and electronics. Analysts estimate these tariffs could add $1,250 to the annual cost of living for the average American household—a substantial burden for families already struggling with inflation. Additionally, according to the well-regarded Tax Foundation, the tariffs are projected to reduce GDP by 0.5% and result in the loss of approximately 292,000 jobs.