Let’s Call These Tariffs What They Are: Trump’s National Sales Tax

 

A recent Wall Street Journal headline read: “The dumbest trade war in history—Trump will impose 25% tariffs on Canada and Mexico for no good reason.”
But in reality, Trump does have a reason—one that benefits the ultra-wealthy at the expense of middle-class Americans.

The Biggest Wealth Redistribution in U.S. History

Congressional Republicans are already working on a tax bill designed to provide massive breaks for billionaires. Even with planned cuts to social programs, reductions in government spending, and the removal of DEI initiatives, the numbers don’t add up. So how do they make up the shortfall?

Enter Trump’s tariffs.

In 2023, the United States imported approximately $429.6 billion worth of goods from Canada. Of that, crude oil accounted for $124 billion, leaving $305.6 billion in non-oil imports. If Trump imposes a 10% tariff on oil and a 25% tariff on other imports, that would generate an estimated $88.8 billion in additional revenue for the federal government.

Applying the same logic to Mexico and China:

• Mexico: $475.2 billion in imports → $118.8 billion in tariff revenue
• China: $427.2 billion in imports → $42.7 billion in tariff revenue

Combined, these tariffs would generate $250.3 billion in additional federal income.

Who Really Pays? You Do.

The average Trump supporter might think, “What’s wrong with that? Isn’t it making other countries pay their fair share?”

Not exactly. Let’s break it down.

Imagine you shop at Aldi because you’re budget-conscious. You pick up a loaf of bread and notice it was made in Canada. No big deal, right?

But under Trump’s plan, the next time Aldi buys that bread from Canada, they’ll have to pay a 25% tariff at the border. If that loaf of bread cost $3.50 last week, it’ll now cost $4.38—because Aldi (and every other retailer) will pass that cost directly onto you, the consumer.

In effect, this is nothing more than a national sales tax on imported goods.

The Real Cost to American Households

This tariff-driven price increase affects everything—not just bread. The average American household will end up paying an estimated $1,893 more per year due to higher costs on imported goods from Canada, Mexico, and China.

Who benefits? Not Canada, not Mexico, and certainly not China. The answer is simple: The wealthy.

The Billionaire Tax Cut Shell Game

Trump’s tax cuts for billionaires create a hole in the budget. Instead of making the rich pay their fair share, that money is being pulled from your pocket through these tariffs—disguised as a tax on foreign nations.

And if the government needs even more money? They’ll just slap tariffs on European imports next. After all, why not take a swing at those “socialist” nations too?

The Bottom Line

Despite what Trump might claim, these tariffs don’t hurt foreign governments—they hurt you. They’re a hidden tax on working- and middle-class Americans, all while billionaires walk away with massive tax cuts.

Let’s call these tariffs what they really are: Trump’s National Sales Tax.