Category: Economy
Tags: Economy, Donald Trump, White House, Trade
The White House said it will continue pursuing President Donald Trump’s tariff policy after voters cited rising living costs as a major concern in the Nov. 3 midterm elections.
Jim Goyer, director of the White House Office of Public Liaison, defended the approach Tuesday at the B20 summit in Washington. “And we are just getting started,” Goyer said.
The election results came as inflation and household expenses, including housing and healthcare, weighed on voters. Roughly two-thirds said Trump’s policies had contributed to inflation, while nearly nine in 10 described the cost of living as a major or crucial factor in their vote. Republicans were punished at the polls over rising prices.
Consumer prices increased 0.4% in October. Annual inflation stood at 3.7% in September, above the Federal Reserve’s 2% target. Trump’s handling of the cost of living drew approval from 21% of Americans, while 62% supported repealing his tariffs.
Gary Cohn, a former chief economic adviser in Trump’s first administration and now vice chairman of IBM, argued Tuesday that tariffs ultimately raise costs for American households. “Tariffs are a consumption tax on the U.S. consumer,” Cohn said.
Kevin Brady said Trump had disrupted the global trading system. Jim Fitterling, however, defended tariffs as a tool against unfair competition and as protection for U.S. manufacturing.
Estimates cited in the debate put the share of tariff increases passed on to consumer prices at 26%. Some effects can take nine to 12 months to move through supply chains.
Democrats plan to challenge the tariffs after taking control of Congress in January. Trump’s veto authority and broad trade powers could make repeal difficult.
UPS said customers are shifting production and sourcing closer to home. The company is opening an air hub in the Philippines in October at a cost of more than $80 million. UPS’s network connects more than 1,100 global trade lanes.