As Donald Trump prepares sworn in on January 20, 2025The country is preparing for its tax and tariff plans. Not sure what that will do for the economy? Good, Shade room reporter AB Burns-Tucker is breaking it all down and sharing what you need to know on ‘TSR Newz.’
Here’s what you should know about Donald Trump’s tariff plan
According to Burns-Tucker, tariffs are taxes that governments impose on goods imported from foreign countries. Additionally, tariffs can be applied to specific items or applied to “goods from an entire country.”
“Imagine that importing an iPhone from China costs $1,000. If Trump imposed a $2,000 tariff on it, the phone would now cost $1,200,” Burns-Tucker explains. “Now, the idea is to get you to say, ‘You know what, let me go ahead and buy the American-made iPhone for $1,100 instead,’ right? Cute concept, except there’s no American-made iPhone. So now it looks like we are paying more for the same thing and China is laughing at the bank.”
Burns-Tucker explained that higher tariffs could initially be seen as beneficial for the US economy. However, it is possible that the cost of the tariffs will ultimately be passed on to consumers.
Here’s what to know about the Tax Plan and what it means for the economy
According to Burns-Tucker, Trump also wants to impose “universal 10-20% tariffs on most foreign products.” This could mean higher family and household costs, a decline in full-time job availability and a 1.4% contraction in the economy.
Even so, Burns-Tucker believes that Donald Trump’s tax and tariff plans could have the opposite effect within the next two years. Scroll above to see her share how this can become a reality. Additionally, she explains how previous tariff initiatives have impacted the economy.
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