The proposals by Trump and Vance concerning tariffs fail the most basic economics test …….

“First, let’s get this straight: Trump is flat wrong to claim that the entire tariff is paid by a foreign country. And Vance is wrong to suggest there’s a debate among pointy-headed experts about whether tariffs increase prices ….There’s no controversy. Open any introductory economics textbook and you’ll find a standard supply-and-demand graph that shows how prices rise when a tariff is imposed on imported products …. Economists agree that tariffs — essentially a tax on domestic consumption — are paid by importers, such as U.S. companies, which in turn pass on most or all of the costs to consumers or producers who may use imported materials in their products …. In other words, tariffs cause prices for consumers to increase — but the amount is not always clear or it may be spread through the economy in ways that are not readily apparent. Companies adapt to the new business environment and adjust accordingly …. Trump’s assertion that tariffs are only a “tax on a foreign country” and “doesn’t affect our country” is, of course, ridiculous. Vance tries to muddy the waters by claiming there is a dispute among economists when, in fact, as we have shown, there is no dispute.” “Trump and Vance Tariffs.” Washington Post (Sept. 1, 2024).

“Trump 2.0 is poised to be much more radical and disruptive. The consequences of a harder US line on economic policymaking will be felt globally …. In Trump 2.0, unfair trade practices, especially with China but also with some of America’s closest allies and partners, need to be stamped out and the power of the US market should be regarded as a weapon to re-level the playing field. Import laws should reflect US priorities and subsidies are to be encouraged. Finally, then, trade will be forced back into “balance”. “Even Further from Free Trade.” Hinrich (Sept 3, 2024).

“In an era of shifting global trade dynamics and geopolitical uncertainties, U.S. importers and corporations face complex decisions regarding their manufacturing strategies. The ongoing trade tensions between the United States and China, coupled with the potential for tariffs regardless of election outcomes, have prompted many companies to reevaluate their reliance on Chinese manufacturing …. The long-term geopolitical outlook is an increasingly important factor in today’s volatile global environment. Companies must assess the political stability of potential locations and consider how changing geopolitical dynamics might affect their operations in different regions of the world in the long term …. In conclusion, successful implementation of any relocation strategy requires long term planning, a capable and experienced executive team, as well as continuous monitoring of the global economy and geopolitical events.” “Tariffs No Matter the Election Outcome.” Global Trade Magazine (Sept. 2024).