The downside uncertainty of tariffs
The Trump administration’s levying of tariffs is a form of taxation, essentially a tax hidden from public view. They are imposed before the final sale of a product. In essence, tariffs are a pre-sales tax, levied at a port-of-entry on goods coming into the country. They are included in the price being paid by Americans for whatever the product is. So, for example, let’s say a carpet made in Vietnam comes into the Port of New York for ultimate sale here. The cost of the carpet goes up 20% when the federal government slaps a tariff on it in New York, and then it comes here where an ...