As Donald Trump prepares to be sworn in on January 20, 2025, the country is preparing itself for his tax plan and tariffs. Unsure of what that entails for the economy? Well, The Shade Room’s Correspondent A.B. 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 Plan For Tariffs
According to Burns-Tucker, a tariff is a tax that the government imposes on goods imported from foreign countries. Additionally, tariffs can be placed on particular items or placed on “goods from an entire country.”
“Imagine that importing an iPhone from China costs $1,000. If Trump slaps a $2,000 tariff on it, the phone now costs $1,200,” Burns-Tucker explains. “Now the idea is to make you say, ‘You know what, whew, let me go ahead and buy the American-made iPhone for $1100 instead,’ right? Cute concept, except there ain’t no American-made iPhones. So now it just seems like we’re paying more for the same thing and China is laughing all the way to the bank.”
Burns-Tucker explained that higher tariffs could initially be perceived as beneficial for the American economy. However, it is possible that the cost of the tariff could end up being passed on to consumers.
Here’s What To Know About The Tax Plan & What It Could Mean For The Economy
According to Burns-Tucker, Trump would also like to impose a “10-20% universal tax on most foreign products.” This could mean higher expenses for families and households, a dip in available full-time jobs, and a 1.4% plunge in the economy.
Despite this, Burns-Tucker says there could be an upside to Donald Trump’s tax plan and tariffs within the next two years. Scroll above to watch as she shares how this could come to fruition. Additionally, she explains how previous tariff initiatives have impacted the economy.
