Trump on Monday signed orders to impose a 50 percent tariff on a wide range of Canadian imports.
The White House claims the tariffs are a “punishment” for Canadian discrimination against American cars, dairy, and alcohol.
But the tariffs will also punish us. Remember, tariffs are import taxes — paid for by you and me and everyone else in America. So, we’re about to pay more for everything we import from Canada — plywood, paper, furniture, hockey sticks, cement, et al. Canada is our second-largest trading partner, for chrissake.
Even if the Supreme Court finds that Trump lacks authority to invoke these tariffs and the government must refund American importers for the extra cost — as the high court did with his first round of tariffs — you and I won’t be reimbursed for the extra costs we’ve paid.
Corporations aren’t giving their customers any of the $80 billion in refunds they’ve received from the Treasury Department for the first round of tariffs, so don’t expect any reimbursement on this second round. Which means we’re doubly screwed.
Worse yet, the Treasury isn’t really bearing the cost of the $80 billion in refunds. The cost is being borne by you and me and all other American taxpayers, because our money funds the government. And as taxpayers we’ll also be paying for the second round of refunds, assuming the Supreme Court orders them. Which means we’re triply screwed.
Actually, we’re quadruply screwed because Trump is imposing the new tariffs under the Tariff Act of 1930 — the notorious Smoot-Hawley tariff that worsened the Great Depression by causing other countries to retaliate and impose tariffs on goods coming from the United States. It’s likely to have a similar effect in coming months.
If you hadn’t noticed, the American economy is already shaky. Prices are rising faster than wages, which means most of us are becoming poorer even before Trump’s next round of tariffs. His war in Iran is pushing up the price of gas and, indirectly, food.
The real reason for the new tariffs is that Trump is pissed off that Canada had the temerity (and the right) to retaliate against his first round of tariffs, and it has resisted Trump’s calls to be annexed as the 51st state.
Why would Canadians ever want to live in a nation that could elect Trump?
In any event, I believe I can speak for most Americans when I apologize to our Canadian friends. We’re sorry we elected him. He’s made our lives worse. He’s a continuing embarrassment to us. (Did you see him grandstand at the World Cup? We have to live with this crap every day.)
Believe me, we’re doing everything we can to put him back in his cage.
Robert Reich is a professor of public policy at Berkeley and former secretary of labor. His writings can be found at https://robertreich.substack.com/.
