Why Trump’s tariff plan might backfire on American consumers

President-elect Donald Trump has announced plans to impose higher tariffs on imports, intensifying global trade tensions. Targeting economic competitors like China, Canada, and Mexico, Trump aims to reduce the U.S. trade deficit, which reached $780 billion in 2023.

He unveiled his tariff strategy on Truth Social, stating it will be among his first executive orders when he assumes office on January 20, 2025.

Kamran Khan, in his vlog, said that the proposed tariffs include a 10% increase on Chinese exports, raising existing rates from 30% to 50%, and a 25% duty on all Canadian and Mexican goods.

Trump called the measure the “price of entry” to the U.S. market. “America First” and “Make America Great Again” remain central to his economic philosophy, with tariffs positioned as a tool to promote domestic manufacturing and job creation.

China’s Foreign Ministry responded sharply, warning of the consequences of a trade war. “No one will win a trade war or a tariff war,” said spokesperson Liu Pengyu, emphasizing the mutual benefits of China-U.S. trade cooperation.

Trump’s rhetoric extended beyond individual nations to organizations like BRICS—Brazil, Russia, India, China, and South Africa. He threatened 100% tariffs on BRICS nations’ exports if they pursued alternatives to the dollar for trade. BRICS economies collectively represent over 28% of global GDP, with a combined GDP exceeding $30 trillion.

Analysts warn that increased tariffs could backfire on U.S. consumers, driving up prices for imported goods. During Trump’s first term, similar tariffs prompted retaliation from trade partners and led to job losses in export-dependent sectors, according to a study by MIT Economics.

While Trump asserts his policies will protect American jobs, critics argue that the burden of tariffs often falls on domestic businesses and consumers. Economic experts also note that shifting production from China to other low-cost countries like Vietnam or Cambodia may only marginally benefit U.S. manufacturing.

With global trade partners on edge, Trump’s aggressive tariff strategy marks the beginning of what could be a turbulent chapter in international commerce. Whether these measures will strengthen the U.S. economy or strain diplomatic relations remains to be seen.