Trump's Tariff Move: A Classic Case of Misguided Economics

Trump's Tariff Move: A Classic Case of Misguided Economics

Progressive TikTok creators have been buzzing, claiming that Trump caved on the reciprocal tariffs due to pressure from other countries. But in reality, it wasn't international pressure that got to him—it was the bond market.

The reason Trump dropped the tariffs was because the yield on U.S. Treasury bonds actually rose, contrary to his plan. Normally, when the stock market crashes, bond yields go down, and interest rates follow suit. This is supposed to help the economy by lowering borrowing costs. But instead, we saw the opposite—bond yields surged, causing interest rates to rise and making it more expensive for the U.S. to borrow money.

This misstep has been costly. The rise in yields has deepened the hole for the U.S. economy, adding even more pressure to the already escalating national debt. In fact, interest payments on that debt are the largest part of the federal budget. But here’s the kicker: despite this, MAGA creators are touting Trump’s moves as brilliant, claiming inflation is down and the economy will turn around. But economists like Robert Frick point out that inflation was already falling before the tariffs and that Americans are now spending less, not more.

As a result, the stock market is tanking, layoffs are on the rise, and everyday Americans are left paying the price. Meanwhile, the wealthiest Americans, who own most of the stock market, will survive the chaos. But those at the bottom? They’ll bear the brunt of the fallout.

And if you think this can’t get worse—Trump's "Project 2025" plans to lower corporate tax rates even further, making the already-out-of-control economy even more tilted in favor of the wealthy.

So, the next time you hear someone say Trump is playing 4D chess, just remember: It's more like he’s playing checkers—and everyone else is getting trapped.