“No More Income Taxes!” – The 10% Trump Tariff Explained
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WHAT IS A TARIFF:
A tariff is essentially an extra "tax" imposed when importing goods from one country to another, designed to make foreign products more expensive and encourage consumers to buy locally, which benefits the domestic economy. However, it's important to note that this 'tax' is paid by the person or company importing the products – not by the country that makes the product. So, if Apple imports from China – Apple is responsible for paying the tariff – not China.
BENEFITS OF TARIFFS:
-They protect US Companies from Foreign Competition.
-Increased Job Growth.
-Higher Government Revenue.
-Favorable Trade Negotiations.
DOWNSIDES OF TARIFFS:
-Higher Prices For Everyone
-Retaliation From Other Countries
-A Decline In Economic Growth
-Less Competition Could Lead to Less Innovation
TARIFFS IN 2025:
On November 25th, it was announced that Trump would enact an executive order to create “an additional 10% tariff on Chinese imports, as well as an additional 25 percent tariff on Mexico and Canada.” These tariffs would continue until China, Mexico, and Canada addressed the movement of 'bad things' and undocumented people across the US border – and, the impact could be pretty significant.
After all, in response to these announcements, “Canada and Mexico said that they would retaliate with tariffs on U.S. products if tariffs on their U.S. exports were imposed” – and, as you would expect, China reflected the same sentiment, shortly after. Mexico’s president even said that “neither threats nor tariffs will solve the issue of migration or consumption of bad things." (I made this PG for YouTube).
IMPACTS:
If history is any indication, Trump can move forward with tariffs using rather specific law, they wouldn’t be the “economic boom” that some people think it would be, and instead, it’s said that “The measures proposed could hit a number of strategic US industrial sectors hard, add approximately $272 billion a year to tax burdens, raise goods prices, lift interest rates, and sap strength in an already-vulnerable household sector.”
To make matters worse, in terms of existing tariffs: In 2022, they generated $80 BILLION DOLLARS for the US Government – which, was just 2% of all tax revenue – enough to keep the government running for just 15 days. This pretty much suggests that it would be IMPOSSIBLE to fund the US government with tariffs alone, and this is purely ‘wishly thinking’ with no chance of actually becoming a reality.
WHY TARIFFS NEXT YEAR?
The reality probably lies somewhere in the fact that the upcoming administration believes that our reliance on China is seen as a bad thing, both economically and politically – and, he could threaten tariffs as a way to negotiate a more favorable trade deal for the United States.
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You really have more MAGA supporters in here than i thought.
Oh BS
@10:30 what you get wrong Steven is that our products are already tariffed to high heaven overseas…….so Trumps argument is if our products are tariffed, we can match their tariffs.
Does he though? Or fid he start his business with 13 million dollar loan from daddy?
YouTube isn’t showing your videos as often as they should
thanks for always keeping us informed graham!
Thanks so much, man – hope all is well!
@humphrey … But what’s your take on this video man?? Good idea or nah??
Is anyone actually watching the vid before commenting? All I am seeing is blind acceptance of the policy without actually refuting any of the points Graham made.
Initially, people click on the video and make a quick assumption based on the title without actually watching. I really tried to cover pros / cons and give a thorough overview / history – I don’t think this really sways one way or another, besides cutting government waste.
yeah that’s fair, guess it’s just a YouTube comments thing haha
@10:30 what Steven gets wrong is that our products are already tariffed to high heaven overseas…….so Trumps argument is if our products are tariffed, we can match their tariffs.
That’s the trump mafia way, blindly accept a trump policy or lie and attack anyone who uses common sense to analyze it
@@GrahamStephan Personally, I believe that cuts are not the only necessary action. I believe the government also needs to increase it’s income. Yes that means tax increases for higher income individuals and closing tax evading loopholes. I also think that corporations SHOULD get tax incentives… IF 80% of their employees are U.S. citizens and paid a livable wage. My stance is, if you’re a corporation that wants to do business in the United States, and you want those sweet sweet tax breaks, you need to provide employment with fair compensation to our citizens.
The idea behind tariffs are that consumers will be less incentivized to buy foreign goods and thus they’ll buy domestic products. In theory this makes sense but in reality tariffs are either paid by American companies that import the same foreign goods or materials that they were importing before the tariffs and so they’re then required to pass that additional expense onto the consumer or the consumer ends up being forced to pay for the more expensive domestically produced good rather than the cheaper foreign made ones. It also creates barriers to trade with our allies and hurts relationships with other countries. It often time causes other countries to retaliate and put tariffs on our exports. If another country makes something more efficiently than us and we make something more efficiently than them, that’s good trade that benefits everybody and should be encouraged. They are a tax increase that benefits nobody except very highly targeted industries of US producers and politicians trying to appeal to American voters that don’t know basic economics
For industries where there are already US based manufacturers though, it suddenly makes the American ones a lot more competitive. And tariffs are nothing new. Not sure why Americans are so adverse to the idea. Pretty much every other developed country in the world uses them.
@joshuadelaughter A lot of it has to do with people like their cheap items after the last couple years of inflation, I don’t want prices to go up even more
@@JakeVanderPloeg Wonderful explanation.
@@RanDom-if2ee Thank you! I’m very passionate about economics!😆
@@JakeVanderPloeg I can tell! Thank you for taking the time to type this well thought out piece👍
Dang, i have never seen such a big creator engage with their community so much. You reply and heart a LOT of comments. Thank you for that.
You got it! I always try my best to reply to comments for the first hour of a video posting!
@@GrahamStephan a couple years ago he used to comment on every single post, YouTube flagged his account for spam :’D he’s one of the more consistent people on this earth, which has led to his success. I used to just say Hi Graham, and he’d say hi back nearly every time. Replying for the first hour makes sense as a happy medium
It’s his team not him
@@MegaCabMorris his team is him lol
I love it
Love how u tied the video together with the government spending. That’s where we should be looking at first.
100% Agreed!
Let’s just go ahead and get rid of social security and replace Medicare. That’d get rid of two thirds of the government spending and I could actually retire.
@@mathehack1I want a refund if that happens. I’ve been paying in for almost 30 years.
One thing we can all agree on, cut government wasteful spending.
Call it what it is government money laundering.
yes but we do not all agree on HOW and WHO should do that. So far it looks like the VA could be a target of DOGE and if any more social programs get targeted it could be bad. If they make defense contractors stop charging the government $299 for a screw, yay doge.
This feels like an impossible task. You can’t eliminate greed, so the only thing to take money from (if not politicians/lobbiest pockets) are generally useful programs and services. Plus constantly yelling “less government spending!” Only drives us further away from a half decent universal healthcare system, which EVERYONE seems to want granted to response to the UHC CEO incident
Wasteful and fraudulent spending. Audit and track spending to private government contractors and nonprofits.
Pentagon is notorious for this. But no one wants to talk about reducing the Military budget. It needs to be addressed.
This video is truly an exceptional, apolitical synopsis with excellent history contextualization! Awesome, thanks!
A) tariffs raise the prices on imported goods. Government collects tariff money from imports.
B) American companies raise their own prices to be just a bit below the tariffed imports.
C) everyone pays more for these products.
D) once people shift to domestic products, tariff revenues go down.
E) assuming domestic producers do hire more people, and income tax is deleted, even less income to government.
Yes, government spending should be scrutinized to get rid of inefficiency and waste. Yet why do musk et al want to target social security while not paying attention to crazy military spending? Because shareholders make a lot of money on military contracts, but none on social security.
Govt spending should be based solely on tariffs….if alot isn’t collected, reduce the size appropriately. It has to be ran like a business.
You should check out Analyzing Finance with Nick, he did a great job highlighting military spending in a recent video and his research is very thorough.
A local product… as great it sounds it is quite impossible to imagine a shift! Imaging not buying a 2$ strainer from Temu whereas the US version local one is 15$.
Musk sucks
So everything on amazon goes up 25% and if there is a US version then it is just 20% more expensive?
No thanks.
Doesn’t matter how you slice and dice it Graham, at the end of the day the consumers are the ones hurting.
Stop consuming
@@descensiongrime6409 lol for real. It doesn’t even occur to them.
Lmao you think everyone has the ability to become self sufficient and no longer grocery shop or engage with literally any imported goods?😂 citizens foot the bill of any tariffs put in place at the end of the day
Idk how people are already forgetting he did tariffs in his first term and the economy was doing amazing by almost every metric until COVID. So it does in fact matter how you slice it and dice it.
@@Matthew-.-yea ok ask the farmers that
A major problem with tariffs are once they are implemented, they are hard to get rid of. We still have tariffs from many decades ago placed on items that are no threat to domestic production. In today’s global society, so many items are produced using parts from multiple countries that if these sweeping tariffs are implemented, pretty much the cost of everything will go up.
Lmao good times to skip usa as market partner
Biden loved trumps tariffs so much, he kept those 😂
Replace tariff with income tax and everything still applies.
Tariffs can, and are, changed quite quickly
USA still has a 25% chicken tax on German utility vans since the 1960s.
You as a consumer can decide where to spend your money at/on. We are taxed to death here and you clowns want more taxes. Income, sales, luxury, gas, property.
How many times does a car have to be taxed once the original tax has been paid? Government says every time you sell one it has to be taxed again. Homes too.
The government is out of control.
Tariffs are GUARANTEED to raise prices and increase inflation. Absolute certainty.
There’s a small chance, fingers crossed, and all, that they create enough local manufacturing to offset inflation. Unlikely, though, and doesn’t help those of us already employed and not looking to own or work in manufacturing.
I don’t even think we can cross our fingers hoping for that. the purpose of tariffs is making things more expensive so the rest will be competitive. if the prices don’t change the tariff is pointless
It’s pie in the sky, the global economies will likely retaliate with their own tariffs and then we’re all back to square one, except everything is a little more expensive for everyone, and some industries will completely disappear and reappear in different countries 😂
So, people here understand it. How does a Wharton grad not? Did he learn something from all his scams and bankruptcies that legitimate economists that study monetary policy for a living did not learn?
lol it’s like yall forgot trump was president before and did all these things already and we were fine.🤣🤣🤣
@@BimmerBrosnot true at all. america is the largest consumer market in the world. losing american customers for global companies would destroy their business. minus china you could combine all the rest of the consumer markets in the world together and they still wouldn’t match the united states market.
Seems like an excuse for companies to continue to price gouge and more than they already are…
The federal income tax is the big one you need to watch out for. Bernie’s absolutely right on this—it would be the biggest wealth transfer in history if Trump got rid of it. His tariffs could throw us into a recession (depending on how reckless he gets with them), but no federal income tax would leave the country completely unrecognizable.
Just like the supply chain issues during covid was a great excuse to skyrocket prices and never bring them back down despite the obvious overproduction we’re currently at.
@@mikeb.2925massive overproduction. No corporate profit margin regulations at all
Businesses will sell what they have for as much as they think they can get for it. Always.
The reason prices have been rising is largely due to manipulation of the money supply by the federal reserve durring the pandemic, combined with a breakdown of supply chain.
@mikeb.2925 look up how much money was added to the money supply during 2020 and 2021. It was 100%. If I make 2x of something it becomes less valuable. But ya, let’s blame companies who adjusted their prices.
Everyone can agree that wasteful spending should be stopped. Now we all need to agree on what is ‘wasteful spending’.
tax cuts in a huge deficit budget
Sweet. Lets start with the Pentagon
okay propaganda bot
Wasteful spending by whom? Who are you to decide what “wasteful spending” is?
Dumb idea.
Income tax was never even supposed to be a thing.
It’s a thing in every country in the world.
Your right. People don’t get it still
Remember there is no temporary tax
This. Adding tariffs in the great depression is NOT a good example because income tax wasn’t a thing back then and therefore people didn’t have extra money to spend on more expensive goods. Nowadays, with everyone receiving 15-30% back in their paycheck, they can afford higher priced goods that THEY decide to buy. It’s all about the freedom to choose what to buy with your money. Not the govt. taking it and wasting it. Not sure why this is so hard to understand.
assuming they do away with income tax****
The prices of related but untarriffed products will go up also……look at what happened when they tariffed washing machines…not only did the price of washing machines go up..but also the prices of dryers, an untarriffed product, also went up!
They tariffed washing machines because China was selling cheaper machines. And putting American companies out of business they tariffed China and saved American businesses and jobs and made the market competitive again
I’ll take 40% of my income back for 40% on material goods I don’t want. Let me decide how to spend my money.
Preach
Exactly
100% this
Great. You are in a position that you benefit from that. If you’re living paycheck to paycheck and didn’t have an income tax, this makes your life far more expensive.
I would benefit from this system personally as well, but I don’t want the most vulnerable to be priced out of basic essentials because I want lower taxes.
So no electricity, no roads, no bridges, no grocery stores, no gas stations… etc. Why not just move to remote Alaska then.
So companies we want to pay more taxes, will be forced to pay the federal government, so we don’t pay the federal government. while we are free to use the money we earn, to buy things we want, based on our own judgment rather than on what’s cheaper. All the while, allowing our local business an equal playing field against companies using slave labor.
Except the companies won’t eat the costs of the tariffs so instead of having the option for $5 Chinese toy and a $10 American toy you have to spend $10 no matter what. Thus increasing the cost of everything
Of course, there will be the American market reaction where locally made goods will also increase their prices a little because they no longer have to compete against such a large discrepancy.
Sounds awful 😮
No, thats not what that means, at all.
@@AdamDooley sounds like a competitive market and capitalism would fix that due to competition. It’s not communist China where they fix prices.
Former veteran here. We had a budget for our unit on base. if leadership didnt spend the full amount, they were fearful the budget would be less the next year. That drove them to be frivolous, and buy whatever they could, even if that didnt benefit us. Wasteful military spending is a huge issue that goes without notice.
I have a buddy in the coast guard who told me they dumped whole helicopters in the ocean for just that reason
Maybe Graham will bring awareness of this issue. not sure if it’s covered on the news. Its very sad considering I was proud to serve our country.
Navy veteran here and I FULLY agree with every word. I was in for almost 10 years and even trying to be cost effective was frown upon, it’s really bad still.
Exactly
I’d rather have higher prices on items purchased where I have a choice of what I buy than payroll tax where I have no choice but to pay it.
Not how it works. There isn’t enough imports to replace income tax.
Good for you. Those aren’t your options.
That seems great until you start to break down what federal taxes pay for. People in states that have less revenue are going to end up with less services, fees, privatized infrastructure/tolls…You may also find that you can buy far less of what you want because of those tariffs
If you have half a million dollars a year it benefits you. If you don’t, then it hurts you.
@@Arthur-nr5cisays who?