Speaking in NY
He adds:
- Lots of progress with Europe on trade
- He thinks of tariffs as taxes.
Tariffs as taxes? HMMMM. I assume he means taxes on exporters to the US government. That may increase the US treasury coffers with the taxes on the borders. Of course, the US is seeing greater deficits as a result of the tax cuts. Growth is expected to pay for those deficits but so far that is not the case.
The impact of the tariffs on imported goods is those goods are potentially more expensive to US consumers, can wreak havoc to supply chains and therefore are taxes to consumers in the US as well.
So who has been taxed?
UPDATE;
He is out with more thoughts and says:
- US budget deficit is higher than anyone would like
- You'll see a different budget approach in the next few weeks
- We have to respect the independence of the Federal Reserve.
I don't know what will be different but it can't be good for fiscal policy/the consumer, can it?
