Trump tariffs threaten to drown gains from tax cuts

Trump's escalating trade war with China is threatening to wash away the positive economic effects from his signature tax cuts, which could endanger his reelection prospects.

Trump has regularly pointed to the booming economy as a central reason he believes he will be reelected and credits the tax cuts with boosting output and bringing down unemployment.

But economists say that his latest tariffs are all but canceling out the effects of the tax cuts for all but the wealthiest American families. An additional round of tariffs Trump has threatened in hopes of securing a trade deal with China could tip the scales altogether.

“It’s a very risky strategy,” says Nicole Kaeding, vice president of Federal Projects at the Tax Foundation, a right-leaning think tank.

https://thehill.com/policy/finance/445492-trump-tariffs-threaten-to-drown-gains-from-tax-cuts

Considering that all but the wealthiest families received little or nothing in the way of tax cuts this amounts to a double whammy.