Today we are looking at something truly unbelievable. The man who built his political career on tariffs has started dismantling them. Yes, you heard that right. Donald Trump. The man of “America First” and trade wars is making a complete turnaround and flipping his entire approach.
TARIFFS OVER?
First of all, this is not theoretical talk. These are official executive orders. Tariffs that were imposed just this past April are now being removed: coffee, tomatoes, pineapples, orange juice and even fuels are now exempt from trade sanctions. And all this comes at a moment when the United States is trying to balance internal economic pressure with its international trade relations.
And it doesn’t stop there. According to the Congressional Budget Office, revenues from tariffs have dropped by one trillion dollars from initial forecasts. And all this because Trump has begun a full “clean-up” of the tariff system, slashing duties on products from China, the EU, Japan and even on auto parts and lumber. Many analysts note that these moves show a tactical retreat under the weight of political damage.
MAKE AMERICA AFFORDABLE AGAIN
“Alright, but why is this happening?
The answer is simple. Political pressure, economic reality and a court that is likely to strike down all the tariffs he imposed.
On top of that, despite promises of growth and jobs, the original plan, the well-known “Trump Plan A”, failed to deliver. Investments are slow to arrive, jobs are not increasing, interest rates remain high and inflation refuses to fall. The effects are visible everywhere, from the housing market to everyday consumer life.
Americans are feeling the squeeze. Prices on store shelves remain high. And Republican electoral losses sent a clear message that daily life “hurts.” This is how Trump’s new slogan was born: Make America Affordable Again.
A slogan aiming to reshape his image as an economic savior, this time not through confrontation but through relief measures.
And what does the new plan include?
• Refunds of two thousand dollars from tariff revenues, a kind of state-funded allowance that, according to his advisors, will “return money to families.”
• Fifty-year mortgages, which lower monthly payments but become extremely expensive over the long run. Many argue the average borrower may never truly own their home.
• Portable mortgages, so you can keep your low interest rate when you move, boosting the housing market. If implemented correctly, it could unblock property transactions.
• Lower tariffs on products not produced in America, such as bananas and coffee.
All this sounds nice in theory, but reality is more complicated. Analysts are worried, saying these moves could ignite even higher inflation. Or at best, they may change nothing in the cost of living. A demand boost without a matching increase in supply can lead to another wave of price hikes. And of course the numbers don't add up because the checks could cost well over $200 billion. For this year it is projected to collect $195 billions from tariffs.
Trump changes strategy constantly. One moment he builds tariff walls, the next he tears them down. One moment he says tariffs bring wealth, the next he cuts them to lower prices. It feels like a storm of statements, decisions and announcements that at every turn creates more uncertainty.
Posted Using INLEO
