Let’s just be clear:
When Trump warns companies to “eat the tariffs,” as he did to Walmart last week, two things are being said:
“I am a President who believes in price controls.”
This is, at its best, a form of socialism, but more akin to communism. This is precisely what Trump criticized Kamala Harris for when she promised during her campaign to investigate companies’ alleged gouging of consumers under the guise of inflation.
Price controls are anti-capitalist, authoritarian, and the most anti-Republican thing a politician could suggest.
“I am filling the coffers of the US government with money extracted from American importers, and ultimately the American people.”
It’s important to understand that foreign nations do not pay tariffs. They are paid by domestic importers — United States companies — who then pass the cost of the tariffs on to consumers or accept less profit at the expense of their shareholders.
When Trump tells a company like Walmart to “eat the tariffs,” he’s telling the company to pay a tax and make no attempt to recoup the loss.
Pay more for the product, but do not alter prices.
When Trump then brags about the amount of money collected in tariffs, Americans must remember that this is not a transfer of wealth from one nation to another. It’s the transfer of profits from US companies to the US government, which would be fine if Trump and Congress had the courage to raise the corporate tax rate.
Instead, he demands they eat the tariffs, which take money out of businesses and the pockets of their shareholders, who are, in large part, Americans investing in their future.
Any money accrued through tariffs will come out of the pockets of importers like Walmart and will inevitably, and perhaps more quietly, be passed on to consumers, while also taking a bite out of Americans’ investment and retirement accounts.
Unfortunately, a solid chunk of Americans are not interested in learning the truth about such things because cult followers are trained to never question their cult leader.
Shut up and drink the Kool-Aid, despite the price of Kool-Aid, which a particular brand of Trump supporter does so with ignorant glee.
