There's plenty of discussion about the House tax bill that passed a few days ago—I’ve written about it here and here. What's truly stunning about all this chatter is the tendency to discuss the tax bill as if its positive effects will occur in a vacuum. They won't. The tax bill's impact (which are overstated in my opinion) will unfold against a backdrop of highly destructive tariff policies from the president, whose erratic behavior creates tremendous uncertainty. Even if you believe the tax cut extensions are beneficial, their effects will be severely diminished due to ongoing turmoil in trade policy.
And now, President Trump is doubling down on his reckless tariff policies promising to once again harm the U.S. economy. His latest threat is to impose a staggering 50% tariff on imports from the European Union. Contrary to the president’s belief, if this plan comes to pass the real losers will be American consumers, not our European trading partners. It once again demonstrates not only economic ignorance but a complete disregard for America's reputation as a reliable and honorable trading partner. It is also questionable if he has the legal authority to do this, and it is certainly a joke to claim that the trade deficit is a national-security emergency.
But today I want to address another issue – namely, the lies Republicans tell themselves in an attempt to normalize this behavior or dismiss it as a “negotiating tactic.” Trump’s erratic decisions aren't strategic, they're destructive. No matter how powerful the presidency has become (and it has grown excessively powerful due to Congress irresponsibly delegating authority), this is an abuse of power. It is not the president’s role to dictate how Apple and other private companies conduct their businesses. Threatening Apple with tariffs unless it relocates manufacturing to the United States is an egregious overreach, harmful to liberty and deeply damaging to the trust required for economic growth.
Trump's unpredictable behavior undermines trust and economic stability both domestically and internationally. Trading partners increasingly view the U.S. as unreliable and unstable, recognizing that they cannot depend on agreements made by this Administration.
American families and businesses already face inflationary pressures and rising costs, and tariffs worsen these burdens by driving prices higher. Trump’s policies will continue that and no special interest policies like no tax on tips will make up for it.
Republicans who refuse to confront this damaging approach share responsibility for the long-term economic harm inflicted on our economy and nation.