Reports suggest Trump may implement a universal tariff on most imports, which could reignite inflation and spark a recession
Multiple Fox News and Fox Business personalities have promoted Trump’s pronouncement of a so-called “Liberation Day” on April 2 — the day the president will unveil his global tariff scheme and possibly implement “the largest peacetime tax increase” in American history “outside of World War II.”
The tariffs, which Trump has labeled “reciprocal” even though they will reportedly take into consideration non-tariff trade barriers such as domestic value-added taxes, could reignite inflation, increase the unemployment rate, and trigger a recession.
Tariffs are a tax on imports from other countries, paid for by people or businesses that import foreign goods for domestic consumption. As explained in detail by the Cato Instituteand supported by other research, “US consumers, including business consumers and particularly poorer consumers, have shouldered the burden of US tariffs through higher prices and reduced export growth.”