After months of Donald Trump imposing and revoking tariffs without warning, the consequences are starting to weigh on the U.S. economy. This morning, the Organization for Economic Co-operation and Development (OECD) announced new predictions for a sharp global economic slowdown and higher inflation in the U.S. thanks to Trump’s tariffs and the uncertainty they have caused. President Trump’s tariff flip-flops have even earned him a new nickname: TACO (Trump Always Chickens Out).
TACO Trump has imposed huge price-raising tariffs that will only continue to raise the costs of groceries, clothes and electronics, costing the country billions and leading the economy into a state of disarray. Americans are increasingly out of work, priced out of housing, and unable to afford basic necessities because of Trump’s destructive tariffs and complete mismanagement of the economy, with beef prices soaring and families facing record-high costs to cool their homes this summer. But don’t just take our word for it:
HEADLINES: The Economic Consequences of Trump’s Tariff Uncertainty Are Dragging Down The Global Economy
- The New York Times: Trump’s Tariffs Expected to Drag Down the Global Economy
- CBS: OECD Forecasts A Sharp Economic Slowdown And Higher Inflation In The U.S., Citing Tariffs.
- CNBC: U.S. Growth Forecast Cut Sharply By OECD As Trump Tariffs Sour Global Outlook.
- Business Insider: It’s Official: Trump’s Tariffs Are Damaging the Economy.
- The New York Times: Baffled by the Trump Tariffs, C.E.O.s Lean on the Word ‘Uncertainty’.
- CNBC: With Trump Tariffs In Limbo, The Uncertainty Is ‘Killing’ Us, Business Owner Says: ‘We Need To Know What Things Are Going To Cost’
- AP News: US Growth Likely To Slow To 1.6% This Year, Hobbled By Trump’s Trade Wars, OECD Says.
- The New Republic: Trump Makes Delusional Claim About Tariffs as Economy Deteriorates.
BACKGROUND: TACO Trump’s Tariff Flip-Flops
- Canada and Mexico Tariff Flip-Flop. On his first day in office, Trump announced he would be imposing 25 percent tariffs on imports from Canada and Mexico, upending the free trade agreement he re-negotiated between the three countries during his first term. Within days of the tariffs taking effect, he announced a thirty-day pause. One day after the tariffs returned, Trump announced an exemption for cars, and within a week, most of the tariffs had been paused once again.
- Backing Down on European Union Tariffs. Trump has repeatedly backed down on tariffs against the European Union (EU). He initially threatened the bloc with 20 percent tariffs on Liberation Day, but backed off hours before they were supposed to take effect, reducing them to 10 percent for 90 days. He also threatened a 200 percent tariff on imported wine from the EU, but it never materialized. In late May, Trump threatened a 50 percent tariff on goods from the EU, set to go into effect on June 1. Two days later, however, he delayed it until July 9.
- Backing Down on China Tariffs. Trump has repeatedly imposed escalating tariffs on Chinese imports, reaching 145 percent in April. Days after imposing the 145 percent tariff, however, he began to waver, and created a carve-out for iPhones and some other electronics made in China at a 20 percent tariff rate. After many businesses started halting shipments coming from China and pausing future orders, Trump said he was lowering the tariffs to 10 percent for 90 days, leaving a separate 20 percent ‘fentanyl tariff’ in place.
- Backtracking on Reciprocal Tariffs & Tariff Formula Inconsistency. Initially, Trump pledged his Liberation Day tariffs would be charging reciprocal tariffs matching the ones other countries impose on US goods. The Trump administration claimed to have a sophisticated formula to determine country-by-country tariff rates. Instead, when the Trump administration rolled out its Liberation Day tariffs, he backtracked on this commitment, calculating the tariffs simply by dividing a country’s trade surplus with the U.S. based on its export value.
- Auto Tariff Flip-Flop. On March 26, the Trump administration announced 25 percent tariffs on imported cars, calling it a “reciprocal tariff.” Just over a month later, Trump signed an executive order exempting companies paying the 25 percent tariff on imported cars and automobile parts from paying any other tariffs for thirty days. He made them permanent one day later.
- Random Exemptions Without Warning. On March 31, White House Press Secretary Karoline Leavitt claimed there would be no exemptions to Trump’s impending tariffs on foreign goods – but the Liberation Day executive order imposing the tariffs exempted “copper, pharmaceuticals, semiconductors, and other energy products.”
- Stock Market Crash Out Flip-Flop. On April 9, the stock market crashed after Trump’s tariffs took effect. Trump claimed that “everything is going to work out well,” and urged American investors to buy stocks, but he ended up pausing the imposed tariffs on most countries for 90 days.
- New Tariff Rates Without Promised Deals. On May 16, Trump suggested he would reimpose “new tariff rates” without completing trade deals with other countries.
- Steel Tariff Flip-Flop. In February, Trump resurrected steel tariffs from his first term without warning. On May 30, Trump upped the rates of steel tariffs from 25 percent to 50 percent without warning.