Republican Congressman Bill Huizenga (MI-4) is defending President Donald Trump’s plans for a massive increase on tariffs on foreign products.
On Wednesday, the president plans to roll out a set of tariffs that he promises will free the United States from foreign goods. The details of Trump’s next round of import taxes are still sketchy.
Most economic analyses say average U.S. families would have to absorb the cost of his tariffs in the form of higher prices and lower incomes.
Speaking to reporters in Battle Creek Monday, Huizenga conceded his constituents in southwest Michigan may feel the effects of the higher tariffs. But he backs the president.
“Is there going to be some adjustments to that? Absolutely. Is it going to be easy? Not necessarily. Is it the right thing to do? Absolutely it is.”
Huizenga insists the tariffs are going to have the effect of getting more investment in manufacturing in the United States.
So what exactly would the president’s plan do?
President Trump is expected to announce import taxes, including “reciprocal” tariffs that would match the rates charged by other countries and account for other subsidies. Trump has talked about taxing the European Union, South Korea, Brazil and India, among other countries.
As he announced 25% auto tariffs last week, he alleged that America has been ripped off because it imports more goods than it exports.
“This is the beginning of Liberation Day in America,” Trump said. “We’re going to charge countries for doing business in our country and taking our jobs, taking our wealth, taking a lot of things that they’ve been taking over the years. They’ve taken so much out of our country, friend and foe. And, frankly, friend has been oftentimes much worse than foe.”
As for what will the tariffs mean for the nation’s economy, nothing good, according to most economists. They say the tariffs would get passed along to consumers in the form of higher prices for autos, groceries, housing and other goods. Corporate profits could be lower and growth more sluggish. Trump maintains that more companies would open factories to avoid the taxes, though that process could take three years or more.
Economist Art Laffer estimates the tariffs on autos, if fully implemented, could increase per vehicle costs by $4,711, though he said he views Trump as a smart and savvy negotiator. The investment bank Goldman Sachs estimates the economy will grow this quarter at an annual rate of just 0.6%, down from a rate of 2.4% at the end of last year.
