To offset proposed tax breaks, Donald Trump is treating new tariffs as if they were a magical source of free money. But if we raise tariffs on foreign goods, who would absorb the higher costs, consumers or exporters?
The answer is simple economics. Typical manufacturing companies barely achieve 5-10% profit margins. No exporter can absorb a tariff greater than their profits and stay in business. So they will raise prices, which would lead to inflation in the United States and perhaps shortages.
Democratic norms are no longer normal. Historically, a crisis like war or wide economic disparities catalyze a new democratic era and a raft of constitutional amendments, but why do we have to suffer to learn? Perhaps compromise is a better alternative.
https://medium.com/@gregblonder/reconstructing-the-14th-018333759c16