Let's Talk Trump Tariffs

The only thing that's going to be liberated is our money from our pockets. Donald Trump’s “Liberation Day” announcements on Wednesday just delivered an unnecessary sucker punch to vital trade partners.

Along with the new tariffs, the White House said the president signed an executive order shutting down the de minimis trade loophole beginning May 2. Under the loophole, shipments worth less than $800 can enter the U.S. duty-free, allowing foreign retailers to sell their products to Americans for cheap. Trump suspended the trade exemption in February but later delayed its cancellation after the U.S. Postal Service said it would halt all inbound packages from China and Hong Kong.

If we do the math, this means that anything valued at or under $800 will be subject to a duty of either 30% of their value or $25 per item, which will increase to a whopping $50 after June 1. The White House rationalized these insane tariffs by pointing to "synthetic opioids" as the reason for all of this future financial pain.

Critics of the canceled exemption said the loophole has hurt American businesses:

“The ability for non-U.S. retailers to sell their products at drastically lower prices to U.S. consumers has significantly impacted the Company’s ability to retain its traditional core customer base,” Forever 21 co-chief restructuring officer Stephen Coulombe said in a court filing.

I don't know about you, but I've never seen a business cut prices once products were cheaper to make. It sounds like a lot of people are still falling for the trickle-down economics lie. And it will be interesting to see where all of these manufacturers are going to find factories in America since they've all been turned into trendy lofts.

One country missing from this wild thrashing was Russia, conveniently enough.

Also missing? Elon Musk.

Donald Trump’s sycophants came out in full force on “Liberation Day” filling the Rose Garden with the architects of America's economic doom. Except for the main contributor, Elon Musk. As Trump made his big announcement, Musk was chatting it up with conservative influencers. Such a far cry from standing next to Trump as he sits, feeble, at the Resolute Desk.