There’s a lot of confusion about President Donald Trump’s extensive tariffs. This is mainly due to the media’s ignorance of basic economics. The result has been largely hysterical headlines about $3,000 iPhones and drastic increases in clothing and grocery bills, as if the full tariff rates will be passed on entirely to consumers. Past experience shows the truth is more complex. Suppliers and manufacturers often swallow the tariffs, especially when retailers like Walmart pressure them to absorb the added costs.
The media’s obsessive focus on possible price increases obscures the sound economic reasons for President Trump’s push to establish new global trade rules. World Trade Organization rules have failed abysmally in their chief goal of achieving “a more prosperous, peaceful and accountable economic world.”
