➡ The escalating trade conflict, particularly the use of tariffs, is causing economic uncertainty and negatively impacting businesses, consumers, and the stock market. Tariffs, contrary to some beliefs, do not boost the economy but instead lead to a decrease in economic activity and manufacturing. They also increase the cost of living and are generally harmful to consumers. Instead of tariffs, beneficial policies should be negotiated with trade partners, focusing on what the US does best – exports, and implementing tax reforms for domestic manufacturers.

➡ The US manufacturing sector, especially business equipment production, is set to benefit without negatively impacting the economy or consumers. However, tariffs could lead to losses for everyone, hence the term ‘trade war’. More details will be shared after Trump’s announcement about ‘American Liberation Day’.

Hey friends, Peggy Hall back with you from the HealthyAmerican.org. We’re going to look at Caroline Levitt’s press concert. Yes, I call them concerts because they’re somewhat of a performance. Now I am titling this video, Trump’s terrible tariffs are tax hikes in disguise, which will devastate the economy and I have all of the receipts. This is number five in my series of the tough truth about tariffs. If you have not seen my other videos, I encourage you to watch those, because it’s likely that I will be answering that I have already answered any objections that you may have.

But I don’t want you to be fooled. Tariffs don’t work. If tariffs worked, then every country would impose a 100% tariff on all imports, and tariffs wouldn’t be so controversial. Every country would want them. So we’re going to be looking at, well let’s start with this, shall we? Second 2025 will go down as one of the most important days in modern American history. Yes, it will, but probably not for the reason why she thinks. Oh, isn’t this cute? Kind of the tactic that I use using headlines. It’s interesting that in the press concert here she’s got a screen grab with headlines and I am going to do a deep dive on some of these articles called Trump’s American First Trade Revolution is a win for working families.

Well, that was written by the fellow that is spewing a lot of, how do I put that misinformation about the truth about tariffs? And it’s very sad that people are falling for it. It has been one of the most open economies in the world and we have the consumer base hands down, the best consumer base. But too many foreign countries have their markets closed to our exports. Too many countries have their markets closed to our exports. Well, let’s take a look at that, shall we? I did a little research at the Office of the United States Trade Representative.

Yes, free trade agreements. Do you see that right here? Free trade is so important to thriving economies that the president even has an office of the United States dedicated to that. And I did some research about trade agreements with other countries and it’s only the United States that is restricting exports. There are no countries in the world that do not take our products. So the United States restricts exports to Cuba, Iran, North Korea, Syria, the Crimea, Donetsk and Luhansk regions of the Ukraine. So think about this, friends. If restricting trade worked in terms of creating thriving economies, then why in the non-spinning world would the United States restrict exports to these countries that are so-called enemies? It doesn’t make sense.

Well, it makes sense if you understand tariffs and that is a special interest of mine. I’ve got a master’s degree in international policy studies. I’ve studied international economics, international trade, different political systems, and there is nothing better than free trade when it comes to creating prosperity, lower prices, more jobs, higher wages, a more stable economy, and dare I say, peace. It’s the most open economies in the world and we have the consumer base hands down, the best consumer base. But too many foreign countries have their markets closed to our exports. This is fundamentally unfair. The lack of reciprocity contributes to our large and persistent annual trade deficit that’s gutted for industries and hollowed out key workforces.

All right, let’s talk about trade deficits, shall we? I’d like you to take a look at this chart and it’s the most recent that I could find. This goes up to 2017 and it very clearly shows that the relationship between the U.S. GDP growth and trade balances are not what Caroline Levitt is purporting that to be. So trade deficits are not necessarily bad, nor do they necessarily cost jobs or reduce growth, and they are not a measure of whether foreign trade policies or agreements with other countries are fair or unfair. Efforts to use trade policy and agreements to reduce the trade deficit is unlikely to produce the effects the administration claims that they will.

In fact, history shows that such efforts are counterproductive. They lead to friction with U.S. trading partners. They harm the people and the policies that they claim to help. The United States actually benefits from importing and from exporting. This raises U.S. living standards and trade policies should aim to reduce the trade barriers. In other words, we should be aiming for free trade at home, and we should open up more products, more markets for U.S. products abroad. So both imports and exports are beneficial. Think about it. On the one hand, by buying goods and services more cheaply than it costs to produce them at home, America benefits from imports.

I’ve talked about that in several of my videos. There are nearly 21 million jobs that depend on the import sector. So reducing imports harms the economy. And looking at exports by selling goods and services in world markets, the United States can enjoy higher prices for them than it could earn by only selling them at home. Therefore, a trade deficit is not necessarily a bad thing. And it’s ridiculous that Caroline Levitt and Trump and Howie Luttnick, the Secretary of Commerce, they are so fixated on this trade deficit almost as if it’s some kind of football game that they’re trying to win.

Americans will be much better off, and history shows if the United States can use trade negotiations to open more foreign markets for its exports, not necessarily because exports will increase the U.S. trade surplus, but because U.S. incomes will be higher if more workers can be employed in the most efficient American firms that pay high wages if those firms can sell more exports at higher prices. Therefore, U.S. living standards are higher if the United States reduces the trade barriers, focuses not on tariffs, but on free trade. And consumers win because we have access to many choices. And the goal of the U.S.

trade policies should never be focused on trade balances. It’s an absolutely ridiculous argument, and I’m glad that I could clear it up. Those days of America beginning tomorrow, being ripped off are over. How is it that Americans are being ripped off or American companies are being ripped off by people buying our products in different countries? It doesn’t make sense to me. Imagine you’re running a clothing store, and someone from Japan comes in to buy your goods. You’re not going to sell your clothing to someone from Japan just because they’re a foreigner? It doesn’t make sense. And let’s say that there is a great demand for your products in Japan.

Wouldn’t it be wonderful to sell your products in Japan and have a larger market? How is someone buying our products ripping off Americans? It is the complete opposite. And workers and businesses will be put first under President Trump, just as he promised on the campaign trail. The president’s historic action tomorrow will improve American competitiveness in every area of industry, reduce our massive trade deficits, and ultimately protect our economic and national security. Well, let’s take a look at the history now, shall we? Let’s see. Economists will agree that tariffs are warning of lasting damage, both economically and diplomatically, as tariffs and other hurdles to trade increase.

Among the risks of tariffs are slower growth, higher inflation, and a collapse in global cooperation that further fractures long-standing alliances. We do seem to be on the threshold of a much broader, if not all-out trade war, says Ed Eswar, a professor of trade policy at Cornell University, and a former international monetary fund official. In this hostile new landscape, it’s every country for itself. In the US, more than 90% of 5,200 product categories are subject to harmful import restrictions. Friends, you need to understand it’s not just simple products that are made in America that are not going to be subject to tariffs.

These products are made with materials that come from other countries. The end product, the finished product, is going to be more expensive. I’ve covered this in so many videos, so this is just really a broad overview, but take a look at this. According to the Tax Foundation, a think tank that scrutinizes tax policy, the average tariff rate facing goods imported into the United States is now back to where it was in 1946, at 8.4%, compared with 1.5% when Trump first took office. If Trump follows through on all his remaining tariff threats, tariffs on US imports could hit 18% on average, the highest level in 90 years.

How do you like them, apples? In the 1930s, tariffs were the death knell for global trade, which was already cratering as the US and other economies sank into depression and mass unemployment. The Smoot-Holly Act was an effort, basically the largest tariffs there, to protect American farms and factories from foreign competition. It paved the way for an increase in tariffs on imports to the US by 20%. Major economies raised trade barriers in response. That’s why it’s called a trade war, and no one wins in this war. After the war, the World War II in 1947, and almost two dozen other countries signed the General Agreement on Tariffs and Trade, that was called GATT.

The drop in tariffs led to a surge in global trade that lowered prices. So here we are. The widening trade conflict creates uncertainty for businesses and consumers, squeezes spending, investment and hiring. In the US, consumer confidence is sliding, stock markets have fallen, and surveys of business investment intentions are weakening. If you overdo it with tariffs, it sends a negative spiral to all markets. It says BMW Chief Executive Oliver Sipsi, he is considering removing the manufacturing from the United States. Did you know that there are nearly half a billion, maybe I don’t have that number right, I think it’s 500,000, half a million jobs in Alabama rely on the auto industry there.

So how do Alabamians feel about these tariffs? There is going to be expected global economic growth to around 2.4, down from 2.9 in 2024, citing the likely effects of the escalating trade war in the US and beyond. Hey, I thought Trump said he was pro peace, and he said strength through, how did he put it? Peace through strength? That kind of reminds me of we’re in this alone together. Yeah, I don’t care for that gaslighting. So Trump is basically waging an all out war with the rest of the world, a trade war under the guise of winning some sort of one sided battle against phantom enemies using tariffs as his weapon of choice.

But here’s the thing, tariffs don’t work. You know it. I know it. Every economist knows it. It seems like only Donald Trump, Howie Mandel, I’m sorry, Howie Lutnick and Press Secretary Caroline Levitt are still in the dark about how harmful tariffs have been, especially Trump’s 2018 tariffs. I did an entire breakdown for you over the last couple of videos that resulted in a 20% drop in US economic activity and a 4% decrease in manufacturing. It didn’t help. I’m going to share with you at the end of this video ways that actually work. Facts don’t appear to matter to Caroline Levitt as she tries to keep a straight face as she creaks out lie after lie about the American economy.

Now, I’m telling you, she’s in top form fine form with her lying. So I noticed she’s no longer wearing that big gold cross that she used to wear maybe she can’t summit the fact that she is lying but for those who don’t know. Here’s a gentle reminder. Tariffs are attacks on the consumer. I have all the details on that in all of my previous videos. I have been aware of the horrible harms of tariffs for years I’ve studied it for years. And if you want to get up to speed on how harmful tariffs are for the consumer the cost of living manufacturers, importers and exporters.

You can watch my in depth videos I’ve got a whole series for you and that’s an excellent way to increase your knowledge. So, here we have some of the headlines and people. Why would these headlines be out there, why would people be seeking, why would countries be seeking tariff exemptions now I’ve got a subset coming out for you to give you a little bit of a sneak peek here. So here are some questions. If tariffs are so great, then why are they so controversial. Why wouldn’t everyone be in favor of them. If tariffs are so great then why aren’t there permanent 100% tariffs on all imports from all countries.

These are serious questions. If tariffs are so great then why are there trade organizations and trade negotiators and something called favored nation status that actually focuses on promoting free trade. If tariffs are so great, then why do some countries and industries want to be exempt from tariffs. If tariffs are so great then why did the economic output decrease 20% in the United States following trumps 2018 tariffs, which also decrease manufacturing jobs. If tariffs are so great then why did trumps 2018 tariffs drive up the cost of living at a faster rate than in nearly a decade.

If tariffs are so great then why does the stock market take every time Trump threatens tariffs. If tariffs are so great then why don’t tariffs decrease trade deficits and remember we just had a chat about why trade deficits are not the metric that should be used to measure how strong our economy is. If tariffs are so great then why don’t tariffs revitalize manufacturing. If tariffs are so great, then why is there a universal agreement among economists that tariffs harm the consumer the economy and manufacturing. If tariffs are so great, why has there been a rush of people buying cars, prior to Trump’s Liberation Day announcement.

If tariffs are so great, why are jobs lost, both in the import and export sector when tariffs are imposed. If tariffs are so great, why does foreign investment decrease following tariffs. If tariffs are so great why are there favored nation status. Why is there favored nation status and trade agreements. If tariffs are so great why does us maintain a trade representative office why not just shut out everyone and have no international trade. If tariffs are so great, why does free trade the opposite of restrictive tariffs result in a stronger economy lower prices lower unemployment more choices for the consumer higher wages and a higher standard of living.

We’ve had 200 plus years in this country of evidence of that. Well the answer my friend is not blown in the wind the answer is in the historical record which unequivocally shows that free trade is the best way to generate prosperity. Opportunity growth and peace for the greatest number of people in the greatest number of countries. I’ve shown you these headlines before, and I will have this sub stack for you but let me just give you a quick review here. History shows that tariffs increase the price of consumer goods. That means your dollar does not go as far.

That means people who do not have discretionary income, who spend at 90 maybe even 100% of all of their money, just on their living expenses they will be hit the most for people that don’t mind about having $100 grocery bill for one little bag of groceries, they’re not going to be bothered by it. So it hits the lower income earners, the most, the very people that they’re gaslighting us about saying that is going to help history shows that tariffs drive up the cost of goods history shows that tariffs decrease manufacturing jobs as exports drop to other countries history shows that tariffs pass the cost as a tax on the consumer and history shows that Trump’s disastrous 2018 tariffs lowered exports and decreased employment in the US manufacturing sector which by the way, we have a robust manufacturing sector in upcoming videos, I can show you maybe I even have it for you here.

We have some of the largest. Well let’s see China has 1.4 billion people. The United States has 340 billion people, but the United States is the number two exporter in the entire world. Those are pretty good apples. This is what the United States exports machinery and equipment. We are the number two exporter in the world friends, we are not suffering in any way when it comes to trade or the balance of trade, the United States exports, a wide variety of goods with top categories including crude oil refined petroleum gas turbines, nuclear reactors medical equipment motor vehicles commercial airplanes soybeans corn and defense products.

Farmers are harmed when there are reciprocal or I should say retaliatory tariffs on their industry here website called shipping solutions it’s very interesting to research, because you can find out from the shipping industry exactly what is going overseas. And I love this website, OEC, and that is one that I have referenced before, and you can find all sorts of. Let’s take a look here you can find all sorts of information about countries and what they are exporting the observatory of economic complexity. This is where I’m getting a lot of my data. This is what the United States is exporting.

I mean we are a major exporter in energy so we are not harmed in our manufacturing whatsoever. It makes sense that China would be the world’s largest exporter. They’re the world’s largest country 1.4 billion people compared to only 340 million. I’ve got lots of this information that I can share with you in upcoming videos here you have it list of countries by manufacturing output friends. The historical record is clear. When the United States starts the war first against other countries who have then done retaliatory tariffs on the United States, everyone loses the worldwide economy actually shrinks.

And our exports are harmed as well. And why in the non spinning world, would the United States want to do that. Gee, it almost seems as if Trump wants to intentionally harm our economy. Here’s what works better than tariffs, negotiating beneficial policies with our trade partners. So it’s a win win, focusing on what the US does best exports. Yes, we export steel. We can prepare for true national security concerns, such as bolstering certain industries and stockpiling materials. Why would we use up our own resources when we, we should buy them from other countries that are willing to sell them in the international marketplace.

The most important thing is to pass tax reforms such as 100% bonus depreciation for these corporations and a 15% corporate tax rate for domestic manufacturers would immediately provide a boost to US manufacturing, particularly in the production of business equipment without harming the economy and the consumer friends I’ve got several videos for you here. And I have said again and again, in short, with tariffs, everyone loses. That’s why it’s called a trade war. I am at your service for this information. I want to thank all of you for being on board. And I will be covering this tomorrow after we find out about Trump’s announcement about what he is calling American Liberation Day.

As always, I look forward to reading your comments and I’ll see you in tomorrow’s broadcast. [tr:trw].

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