US Treasury Secretary Scott Bessent argues that the American dream is not just about affordable products, but also about having good jobs and high wages. However, President Trump’s tariffs are expected to raise prices of various goods, including cars, electronics, and pharmaceuticals.
Trump believes that Americans will start buying more domestic-made cars if they pay a bit more for them, which is part of his “America First” agenda. The president has already imposed 20% tariffs on Chinese goods and plans to announce “reciprocal” tariffs on major trading partners soon.
Bessent claims that access to cheap goods is not the essence of the American dream, but rather having good jobs and wages that can afford homes. He argues that prosperity is not just about buying cheap baubles from China, but also about supporting domestic manufacturing and adhering to his economic agenda.
The debate over tariffs has unified Republicans and Democrats, with many concerned about China’s economic practices and the impact of trade barriers on American consumers. While some experts believe that Trump’s strategy could boost the economy through tax cuts and deregulation, others argue that it will lead to higher prices and decreased consumer confidence.
Economists and experts warn that reality often trumps ideology for most people, and that policies like Trump’s tariffs may not be popular with Americans. The timing of the tariff initiatives is particularly perilous, as they coincide with a period of low inflation during Trump’s first term.
Source: https://www.nytimes.com/2025/03/31/business/trump-tariffs-higher-prices.html