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Tuesday, August 26, 2025

The Tariff Con Job: When Will American Voters Catch On?



The Tariff Con Job: When Will American Voters Catch On?

When President Trump and his allies insist that foreign countries are “paying” for tariffs, they are pushing a political illusion no less deceptive than the infamous claim that “Mexico will pay for the wall.” The reality is far less dramatic: tariffs are taxes collected at the U.S. border, paid by American importers, who then pass the costs along to consumers in the form of higher prices.

In effect, tariffs are a form of sales tax—just one that is hidden in the fine print of supply chains rather than printed on a receipt.


The Mechanics of the Lie

When a tariff is levied, U.S. Customs and Border Protection collects the duty directly from the American company importing the goods. If a retailer brings in electronics from China or garments from India, the tariff is added to their cost. Those businesses almost never absorb this as a charitable loss. Instead, they raise prices at checkout.

So when officials proclaim that China, India, or Europe is footing the bill, what they really mean is that American families are footing it—quietly, invisibly, one grocery trip and online order at a time.


When Do Voters Notice?

This deception works politically in the short run because tariffs are not billed directly to households the way income taxes are. Few voters receive a notice in the mail saying: “Here is the tariff you paid this year.” Instead, the pain trickles through the economy in higher prices for shoes, smartphones, appliances, even cars.

But inflation is sticky. As prices creep up, especially on everyday essentials, voters will eventually connect the dots. Economists have long warned that tariffs are regressive—they hit lower- and middle-income families hardest, because these households spend a greater share of their income on goods rather than services.

The political question is not if voters will notice, but when.


Tariffs as Growth Killers

Another overlooked truth is that tariffs, functioning as a hidden sales tax, are inherently anti-growth. They distort markets, discourage investment, and slow down consumer spending. History provides ample precedent: from the Smoot-Hawley tariffs of the 1930s to more recent trade wars, protectionist walls have consistently dampened economic activity.

The logic is simple. Higher prices mean consumers buy less. When demand slows, businesses shrink output, jobs are lost, and the economy grows more slowly. In a world where U.S. growth is already modest compared to emerging economies, an added drag from tariffs could prove especially damaging.


The Reckoning Ahead

The tariff con job may buy short-term political theater, offering soundbites about “making China pay” or “protecting American workers.” But the longer it continues, the more voters will feel the squeeze in their wallets. Once the disguise is stripped away, tariffs will be seen for what they are: stealth taxes on American households, a brake on growth, and a recipe for disillusionment.

The only unanswered question is how long it will take for the average American voter to wake up and call the bluff.




टैरिफ का छलावा: अमेरिकी मतदाता कब समझेंगे?

जब राष्ट्रपति ट्रम्प और उनके सहयोगी यह कहते हैं कि विदेशी देश टैरिफ का भुगतान कर रहे हैं, तो वे एक राजनीतिक भ्रम फैला रहे हैं, ठीक उसी तरह जैसे कभी कहा गया था कि "मैक्सिको दीवार के लिए भुगतान करेगा।" हकीकत कहीं और है: टैरिफ अमेरिकी सीमा पर वसूले जाने वाले कर हैं, जिन्हें अमेरिकी आयातक चुकाते हैं और फिर उसकी लागत उपभोक्ताओं पर डाल देते हैं।

असल में, टैरिफ बिक्री कर का ही एक रूप हैं—बस यह रसीद पर साफ लिखा हुआ नहीं आता बल्कि आपूर्ति शृंखला की बारीकियों में छिपा होता है।


झूठ की असलियत

जब टैरिफ लगाया जाता है, तो यू.एस. कस्टम्स और बॉर्डर प्रोटेक्शन सीधे अमेरिकी आयातक कंपनी से शुल्क वसूलता है। अगर कोई खुदरा विक्रेता चीन से इलेक्ट्रॉनिक्स या भारत से कपड़े लाता है, तो टैरिफ उसकी लागत में जोड़ दिया जाता है। कंपनियाँ इसे दान की तरह अपने ऊपर नहीं लेतीं, बल्कि उपभोक्ताओं से वसूल करती हैं—माल की कीमतें बढ़ाकर।

इसलिए जब अधिकारी दावा करते हैं कि चीन, भारत या यूरोप बिल चुका रहे हैं, तो हकीकत यह है कि अमेरिकी परिवार यह बोझ उठा रहे हैं—चुपचाप, अदृश्य रूप से, हर ग्रोसरी ट्रिप और हर ऑनलाइन ऑर्डर के साथ।


मतदाता कब समझेंगे?

यह धोखा राजनीतिक रूप से कुछ समय तक काम करता है क्योंकि टैरिफ आयकर की तरह सीधे घरों पर बिल बनाकर नहीं आते। मतदाताओं को कोई चिट्ठी नहीं मिलती जिसमें लिखा हो: “आपने इस साल इतना टैरिफ दिया।” बल्कि, यह दर्द धीरे-धीरे कीमतों में बढ़ोतरी के रूप में आता है—जूते, स्मार्टफोन, घरेलू सामान से लेकर कारों तक।

लेकिन महँगाई टिकाऊ होती है। जैसे-जैसे रोज़मर्रा की चीज़ों के दाम बढ़ते हैं, मतदाता आखिरकार इसे समझेंगे। अर्थशास्त्रियों ने लंबे समय से चेतावनी दी है कि टैरिफ प्रतिगामी (regressive) होते हैं—इनका असर निम्न और मध्यम आय वर्ग पर सबसे ज्यादा पड़ता है, क्योंकि ये वर्ग अपनी आय का बड़ा हिस्सा वस्तुओं पर खर्च करते हैं, सेवाओं पर नहीं।

राजनीतिक सवाल यह है कि मतदाता कब जागरूक होंगे, क्या वे जागरूक होंगे नहीं।


विकास की रुकावट के रूप में टैरिफ

एक और अनदेखा सच यह है कि टैरिफ, जो छिपे हुए बिक्री कर की तरह काम करते हैं, स्वभाव से ही विकास-विरोधी हैं। ये बाज़ार को विकृत करते हैं, निवेश को हतोत्साहित करते हैं और उपभोक्ता खर्च को धीमा कर देते हैं। इतिहास इस बात की गवाही देता है: 1930 के दशक के स्मूट-हॉले टैरिफ से लेकर हाल के व्यापार युद्धों तक, संरक्षणवादी नीतियाँ लगातार आर्थिक गतिविधियों को दबाती रही हैं।

तर्क सीधा है। ऊँची कीमतों का मतलब है कि उपभोक्ता कम खरीदते हैं। जब माँग घटती है, तो व्यवसाय उत्पादन घटाते हैं, नौकरियाँ कम होती हैं और अर्थव्यवस्था धीमी पड़ जाती है। एक ऐसी दुनिया में जहाँ अमेरिकी वृद्धि पहले से ही उभरती अर्थव्यवस्थाओं की तुलना में धीमी है, टैरिफ का अतिरिक्त बोझ और भी नुकसानदेह हो सकता है।


आने वाला हिसाब

टैरिफ का यह छलावा अल्पकालिक राजनीतिक नाटक के लिए तो काम आ सकता है—“चीन को भुगतान कराना” या “अमेरिकी मज़दूरों की रक्षा करना” जैसे नारे गढ़ने के लिए। लेकिन जितना लंबा यह चलता रहेगा, उतना ही उपभोक्ताओं की जेब पर बोझ बढ़ेगा। जब यह नकाब उतर जाएगा, तो टैरिफ वही नज़र आएंगे जो वे हैं: अमेरिकी परिवारों पर छुपा हुआ कर, विकास पर ब्रेक और अंततः मतदाताओं में मोहभंग का कारण।

अब बस यही अनुत्तरित सवाल है कि औसत अमेरिकी मतदाता कब जागेगा और इस bluff को पहचान लेगा।




The Tariff Con Job: When the Bill Comes Due for American Families

For years, American leaders have told voters that tariffs are a way to “make foreign countries pay.” The story is simple, catchy, and false. Tariffs are not paid by China, India, or the European Union. They are paid at the border by U.S. importers, who then raise prices on the products they sell. In reality, tariffs are stealth taxes on American households.


What the Numbers Show

Household Impact

The Congressional Budget Office (CBO) and independent economists estimate that U.S. households paid between $800 and $1,300 more per year during the 2018–2020 tariff wars, depending on income level and spending patterns. With Trump’s 2025 tariff escalations—covering hundreds of billions in goods—household costs are expected to rise even higher, potentially topping $1,500 annually per family.

The mechanics are straightforward:

  • A 25% tariff on a $1,000 washing machine raises its cost by $250.

  • A 10% tariff on electronics like smartphones or laptops adds $50–$100 per device.

  • Clothing and footwear, major imports from Asia, see markups of 15–20% in some categories.

Over time, these costs ripple across everyday spending. Unlike income taxes, which are progressive, tariffs hit lower-income families hardest because they spend a larger share of their income on goods.


Macroeconomic Effects

Economists estimate that the 2018–2019 tariff battles shaved 0.3–0.5 percentage points off U.S. GDP growth annually. That may sound small, but in a slow-growing economy, it’s the difference between a healthy expansion and a stall.

The Peterson Institute for International Economics calculated that tariffs imposed between 2018 and 2020 effectively cost the U.S. economy $80 billion annually in lost output. With the 2025 tariff regime widening—covering imports from allies as well as rivals—forecasters warn of similar or greater drag.

The equation is simple:

  • Higher tariffs → higher prices → weaker consumer demand.

  • Weaker demand → slower growth → job losses in industries from retail to logistics.


Political Consequences

The illusion that “China is paying” buys political cover in the short term. But as voters feel rising prices for essentials—groceries, clothing, household items—the narrative collapses. Unlike abstract debates about deficits or sanctions, higher consumer costs are tangible, personal, and politically explosive.

The key question is timing. How quickly will voters connect the dots between tariffs and their wallets? Polling during the earlier trade war showed voters were skeptical but confused; by 2025, with inflation still fresh in memory, the patience for another hidden tax may be thin.


The Coming Reckoning

Tariffs are essentially sales taxes levied at the border, dressed up in nationalist rhetoric. They reduce growth, raise costs, and disproportionately punish working families. If history is any guide, the political fallout is inevitable.

In the end, the American people will not remember who “won” the tariff battles. They will remember how much more they paid at the checkout line—and how little they got in return.




टैरिफ का छलावा: अमेरिकी परिवारों के लिए जब बिल आएगा सामने 

कई वर्षों से अमेरिकी नेताओं ने मतदाताओं को यह कहानी सुनाई है कि टैरिफ “विदेशी देशों से भुगतान कराया जाएगा।” कहानी सरल है, सुनने में आकर्षक भी, लेकिन बिल्कुल झूठी। टैरिफ चीन, भारत या यूरोपीय संघ द्वारा नहीं चुकाए जाते। इन्हें सीमा पर अमेरिकी आयातकर्ता चुकाते हैं, और फिर उत्पादों की कीमत बढ़ाकर उपभोक्ताओं से वसूली जाती है। असलियत में, टैरिफ अमेरिकी परिवारों पर थोपे गए छिपे हुए कर हैं।


आँकड़े क्या कहते हैं

घरेलू असर

कांग्रेशनल बजट कार्यालय (CBO) और स्वतंत्र अर्थशास्त्रियों का अनुमान है कि 2018–2020 की टैरिफ जंग के दौरान अमेरिकी परिवारों ने औसतन 800 से 1,300 डॉलर प्रति वर्ष अतिरिक्त खर्च किया। ट्रम्प की 2025 की नई टैरिफ नीतियों—जो अरबों डॉलर के सामान पर लागू हुई हैं—के साथ, यह लागत और भी बढ़ने की उम्मीद है, और प्रति परिवार 1,500 डॉलर वार्षिक तक पहुँच सकती है।

तरीका सीधा है:

  • $1,000 की वॉशिंग मशीन पर 25% टैरिफ का मतलब है $250 अतिरिक्त।

  • स्मार्टफोन या लैपटॉप जैसे इलेक्ट्रॉनिक्स पर 10% टैरिफ का मतलब है $50–$100 तक अतिरिक्त।

  • कपड़े और जूते, जो एशिया से भारी मात्रा में आयात होते हैं, कई श्रेणियों में 15–20% तक महँगे हो रहे हैं।

समय के साथ, ये लागतें रोज़मर्रा की खरीदारी में जुड़ जाती हैं। आयकर प्रगतिशील (progressive) होता है, लेकिन टैरिफ प्रतिगामी (regressive)—कम आय वाले परिवारों पर सबसे अधिक बोझ डालते हैं क्योंकि उनकी आय का बड़ा हिस्सा वस्तुओं पर खर्च होता है।


व्यापक आर्थिक प्रभाव

अर्थशास्त्रियों का अनुमान है कि 2018–2019 की टैरिफ जंग ने अमेरिकी GDP वृद्धि को हर साल 0.3–0.5 प्रतिशत अंक तक घटा दिया। यह सुनने में छोटा लग सकता है, लेकिन धीमी गति से बढ़ रही अर्थव्यवस्था में यही फर्क है कि विस्तार हो या ठहराव।

पीटरसन इंस्टिट्यूट फॉर इंटरनेशनल इकोनॉमिक्स ने गणना की कि 2018 से 2020 के बीच लगाए गए टैरिफ ने अमेरिकी अर्थव्यवस्था को हर साल लगभग 80 अरब डॉलर का नुकसान पहुँचाया। 2025 की नई टैरिफ नीति, जो अब सहयोगियों और प्रतिद्वंद्वियों दोनों से आयात पर लागू हो रही है, वैसा ही या उससे बड़ा झटका देने की चेतावनी देती है।

समीकरण सरल है:

  • ऊँचे टैरिफ → ऊँची कीमतें → कमजोर उपभोक्ता मांग।

  • कमजोर मांग → धीमी वृद्धि → रिटेल से लेकर लॉजिस्टिक्स तक उद्योगों में नौकरी का नुकसान।


राजनीतिक परिणाम

“चीन भुगतान कर रहा है” जैसी कहानी कुछ समय तक राजनीतिक ढाल का काम करती है। लेकिन जैसे-जैसे मतदाता रोज़मर्रा की आवश्यक वस्तुओं—किराना, कपड़े, घरेलू सामान—की बढ़ी कीमतें महसूस करेंगे, यह कहानी ढह जाएगी। घाटे या प्रतिबंधों पर बहस अमूर्त लग सकती है, लेकिन उपभोक्ता लागत बढ़ना व्यक्तिगत और राजनीतिक रूप से विस्फोटक है।

मुख्य सवाल समय का है। मतदाता कितनी जल्दी टैरिफ और अपनी जेब के बीच संबंध समझेंगे? पहले की टैरिफ जंग के दौरान सर्वेक्षणों ने दिखाया कि मतदाता सशंकित थे, लेकिन भ्रमित। 2025 में, जब महँगाई का दर्द अभी भी ताज़ा है, तब शायद धैर्य और कम होगा।


आने वाला हिसाब

टैरिफ मूलतः सीमा पर लगाए गए बिक्री कर हैं, जिन्हें राष्ट्रवादी भाषणबाज़ी में सजाकर प्रस्तुत किया गया है। वे वृद्धि घटाते हैं, लागत बढ़ाते हैं और कामकाजी परिवारों को सबसे ज्यादा नुकसान पहुँचाते हैं। यदि इतिहास से कोई सबक लिया जाए, तो राजनीतिक असर अवश्यंभावी है।

अन्ततः, अमेरिकी जनता को यह याद नहीं रहेगा कि टैरिफ की लड़ाई “किसने जीती।” उन्हें यह याद रहेगा कि उन्होंने चेकआउट काउंटर पर कितना अधिक भुगतान किया—और बदले में कितना कम पाया।






Here are two visuals:

  1. Average Annual Household Cost from Tariffs — showing that families paid about $1,050 per year during 2018–2020, and could face $1,500 per year in 2025.

  2. GDP Growth Drag from Tariffs — highlighting that tariffs reduced growth by about 0.4 percentage points in 2018–2019, and are projected to cut 0.5 percentage points in 2025.


Here’s the combined infographic-style chart:

  • The blue bars show the rising annual household costs of tariffs ($1,050 in 2018–2020 vs. $1,500 projected in 2025).

  • The orange line shows the corresponding drag on GDP growth (0.4 vs. 0.5 percentage points).

This side-by-side view makes it easy to see how tariffs squeeze both families’ wallets and the overall economy.



 Here’s a social-media optimized version of the chart — with annotations, bold numbers, and a clear caption:

  • Blue bars = How much more U.S. families pay each year.

  • Orange line = How tariffs drag down GDP growth.

  • Caption emphasizes the core message: “Tariffs act as hidden sales taxes: Families pay more while the economy slows.”


It’s time to unmask the Trump tariffs for what they really are: A giant national sales tax that will hobble U.S. economic growth Buckle up, Americans. You’ve just been ambushed by a federal money grab that this nation hasn’t witnessed in recent history, the equivalent of a national sales tax—branded under another name. This version’s a giant revenue raiser that deficit-ridden Washington is likely to get hooked on. In fact, it’s looking more and more like America’s answer to Europe’s fatal attraction that’s long been the leading enabler for the region’s extremely high levels of government spending: the value-added tax—the VAT. As I’m sure you’ve guessed by now, we’re talking about the Trump tariffs. And you can forget about foreigners picking up the tab for the tariffs. It’s Americans who will. .......... According to a wide range of forecasts, this new nationwide sales levy will yank back from consumers’ wallets about half the projected tax savings from the One Big Beautiful Bill’s extension of the 2017 Trump tax cuts. ........... These taxes come in two forms: A few nations, including Pakistan and Myanmar, deploy a simple countrywide tax similar to America’s state sales taxes. But the most common type by far is the value-added system imposed in stages at each level of production. It’s a bedrock of the regimes in France, Germany, and virtually every other EU country. The VAT is a formidable revenue generator that has fueled government spending in Europe and imposed a huge drag on its nations’ growth. ......... The U.S. is highly unusual in that it’s never had a VAT or in the postwar era, anything resembling a major national sales tax. This stand-alone status in shunning the former likely explains why America’s federal spending stands at least 10 percentage points lower as a share of GDP than the lions of Europe. But the Trump tariffs mark a historic shift to an effective national sales tax. By employing huge tariffs, Uncle Sam is embracing a tax that’s virtually never been used at remotely this scale by any other major economy in recent history. .......... Although tariffs were an important source of federal funding from the 1880s to just after World War II, they’ve amounted to a relatively small portion of U.S. federal receipts ever since. In 2024, even though the Biden administration retained most of the tariffs from Trump’s first term, the average U.S. tariff ran at just 2.5%, raising only $77 billion, or around 1.6% of all federal tax proceeds. .......... They’re collected at U.S. ports of entry by the U.S. Customs and Border Protection agency and are paid entirely by American importers. Under the Trump plan, the rates vary greatly even for the same goods, depending on what country they’re arriving from. On aluminum and steel, we’re charging Canada 50% and the U.K. “just” 25%. Typically, importers tack the tariff cost onto the price of their products in auto showrooms, grocery chains, and megastores. Hence, they raise the bill for American consumers at checkout counters. .......... Tariffs are “indirect” taxes embedded in retail prices, like VATs, and are not added at checkout. Sales taxes, on the other hand, are tacked on at the point of sale and visible on receipts, and usually spark outrage when they are increased. A danger of tariffs is that they could become a VAT-like way to hike taxes on the sly. ......... All told, according to the Budget Lab at Yale, the Trump administration has raised the average effective tariff rate to 18.6% for Americans. This towering figure is approaching the devastating 19.8% rate imposed by the Smoot-Hawley Tariff Act of 1930, a notorious measure that helped sink the U.S. economy during the Great Depression. ............ According to the nonpartisan Tax Foundation, by the end of 2025, the run rate is predicted to be $210 billion annually. That’s a big number. It equates to over 9% of personal income taxes and 40% of corporate taxes paid in 2024. According to the Budget Lab at Yale, the Trump tariffs will lift a total of $2.7 trillion from Americans’ pockets through 2034. ......

The Trump tariffs will amount to one of the largest tax hits in U.S. history.

........... According to the nonpartisan Congressional Budget Office, the extension of Trump’s reductions will reduce taxes by around $400 billion relative to what they would have been next year. Trump’s tariffs will grab back half of those savings via the $200 billion–plus tariff smack in 2026. So Trump’s putting more money in families’ pockets with one hand and taking a big chunk of it back with the other. ............. Inflation is defined as a broad-based, persistent increase in a nation’s general price level. It is not triggered by taxes, whether they’re sales taxes or de facto sales taxes, like tariffs. Instead, as legendary economist and Nobel laureate Milton Friedman famously stated: “Inflation is always and everywhere a monetary phenomenon.” Indeed, we have never observed significant inflation, a period in which the annual inflation rate exceeds 4% and lasts for at least two years, in any country in which the money supply has not significantly increased prior to the outbreak of inflation. ............ Just consider our last bout of inflation in the United States. Following the pandemic, the U.S. money supply, measured by M2, experienced the fastest rate of peacetime growth since the Fed’s founding in 1913. The annual growth rate of M2 peaked in February 2021 at 26.7%, and that annual rate averaged a stunning 21.0% from February 2020 to February 2021. As night follows day, inflation surged. In 2022, it peaked at 9.1% per year in June, and it averaged 7.0% per year between April 2021 and December 2022. The inflation wasn’t temporary and wasn’t caused by supply-chain “glitches,” or a variety of any other nonmonetary factors that were thrown up as explanations for the inflation episode. It was caused, pure and simple, by the surge in the money supply. ........... While tariffs will increase the relative prices of imported goods and services, they will not change the overall price index. The Trump tariffs will simply force Americans to spend more on cars, products made from steel and aluminum, European wines, and all other items heavily taxed at our borders. Unless the money supply is goosed, Americans will have less to purchase products and services that aren’t shipped from abroad—everything from domestic plane tickets to restaurant meals to soft drinks. It will be more or less a wash, with the extra money spent on tariffed goods matching the drop in what’s spent on everything else. The specter of inflation will only reappear if the Fed balloons the money supply. .......... The president’s arguments are incorrect. It is all in the arithmetic. The deficits are bulging because Americans spend more than this nation produces domestically. The truth is revealed by a famous economic identity. Spending falls into three categories: consumption, investment, and government expenditures. Whereas the value of all goods and services produced is equal to the gross domestic product (GDP), the gap between the aggregate spending (C+I+G) and GDP is by definition equal to the difference between exports and imports. ......... And the numbers work perfectly. In 2024, the difference between what the U.S. spent ($31.2 trillion) and what it produced ($30.33 trillion), was $872.5 billion. That precisely equaled the overall trade deficit. ........... Put simply, the deficit arises from a choice we’ve made as Americans to consume much more than we make. It is not the result of nefarious activities by foreigners. In short, since 1974, the U.S. has witnessed a trade deficit each year, all made in the USA. .......... As it turns out, these deficits have been easy for the U.S. to finance. Foreigners are more than willing to send capital to the U.S. so that the funds can be invested in dollar denominated assets by purchasing U.S. stocks, corporate bonds, and apartment complexes, to name a few places where foreign capital flows in and rests in the U.S. All of this is part of the exorbitant privilege associated with possessing the world’s premier currency. ............... Like all taxes, the tariffs will impose a drag on economic growth. Not surprisingly, the Yale Budget Lab forecasts that the extra duties will slow GDP growth by a substantial 0.4 percentage points per year over the long run. That would amount to a huge hit to the average annual growth rate of 2.2% that the U.S. has experienced since 2000. ...........

Americans are about to shoulder a big, unadvertised, stealth tax hike.

This nation is the world’s most abundant supermarket, offering the best prices and greatest variety of goods on its shelves. The Trump tariffs are poised to create a far more limited and expensive marketplace by sweeping from those shelves the best bargains arriving from across the globe. ........... Steve H. Hanke is a professor of applied economics at Johns Hopkins University. He served on President Ronald Reagan’s Council of Economic Advisors.


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