President Donald Trump's tariff war is going to "whack" communities that cast the strongest votes for him, the conservative Wall Street Journal editorial board wrote in a new warning analysis published on Tuesday.
Trump had previously planned to let the tariffs on Canada and Mexico take effect last month, but authorized a 30-day extension after heavy pressure caused him to "blink," in the board's previous words. This time, he seems determined to go through with it, although even now he appears to be considering some sort of compromise.
"Tariffs are taxes, and Mr. Trump’s latest tariffs are estimated to be about an annual $150 billion tax increase," wrote the board. "Taxes are antigrowth. That’s the message investors are sending this week since Mr. Trump let his 25% tariffs on Canada and Mexico take effect. The President also raised his 10% tariff on China by another 10%. Canada and China retaliated, while Mexico is holding off until Sunday." As far as some immediate impacts, the board wrote, "Brace for higher prices on berries, bell peppers, and, gulp, beer" — with one of the most popular beers in the country, Mexican-brewed Modelo Especial, taking a clear hit.
ALSO READ:'Absolutely unconscionable': Ex-Republican demands Trump removed from office after fight
To top it all off, Trump's tariffs affect oil products, too, meaning "pain at the pump" is coming, said the board — particularly in the Midwest, and for drivers of large trucks.
Trump-supporting areas will be affected brutally, the board contended.
"The President also professes to love American farmers, but he apparently loves tariffs more," the board chided. "U.S. farmers are already being squeezed by low crop prices and inflation. The American Farm Bureau Federation (AFBF) says farmers are losing money on almost every major crop planted for the third straight year. Tariffs will increase their pain. About 85% of the U.S. potash supply for fertilizer is imported from Canada. China is hitting U.S. farm exports with a 15% tariff, which will let farmers in Brazil and Australia grab market share."
Ultimately, the board concluded, "Mr. Trump’s tariff spree is the triumph of ideology over, well, common sense. Let’s hope the President soon comes to his senses."