Like any disruption in the economy, the working class and small businesses usually are harmed the most. They are the most vulnerable. They have less savings/resources!
1. A tariff is in essence a tax on consumption. The entity that transport the international product is taxed at the US border. This cost eventually filters down to the consumer.
2. It’s been estimated by Trump trade adviser Navarro that the tariffs will bring in $700 billion a year or $7 Trillion over ten years. A HUGE tax paid mostly by the working class.
3. What makes this tax worse it that if effects the working class the most. It is a regressive/unfair tax since a much higher percentage of their income is used to pay these taxes. The effect on the rich is substantially less!
4. Inflation, lost jobs and instability in domestic and international financial markets. The possibility of a recess is far greater now.
5. The US economy by most economic metrics was solid and strong when Trump/GOP took over the Federal Government. Now within only 60 days via massive cuts in our Federal Government and this HUGE trade tariffs, our economy is hitting a solid brick wall. Recession is now expected. How soon or how long will be determined if Trump makes major changes or eliminates the tariffs.