Trump’s 10% tariff plan is welfare for the rich, White House says

Former President Donald Trump’s proposal to impose a “universal baseline tariff” on all goods entering the United States would spike inflation and tamp down on economic growth, the White House said Wednesday.

“Combining a sweeping tariff tax on the middle class with more trickle-down tax welfare for rich special interests would stifle economic growth and fuel inflation,” White House spokesman Andrew Bates said in a statement.

President Joe Biden opposes any effort to impose a tariff on all goods and believes the plan would increase prices for households, Bates added.

Trump last week called for an “automatic” tariff on foreign goods in an interview with Fox Business, and said he liked the idea of setting the rate at 10%. Such a system could encourage companies to move manufacturing back to the US, Trump argued.

“I think we should have a ring around the collar,” Trump said.

While in the White House, Trump imposed substantial new tariffs on solar panels, washing machines, steel and aluminum, as well as products from China.