How Tariffs Act as a Hidden Consumption Tax

Lucas and Luna explore how tariffs function as a de facto consumption tax on American households, using the 2018–2019 trade war as a case study. They break down the economic mechanism by which import duties raise prices for consumers, citing research from the Federal Reserve and the Peterson Institute that found the costs of tariffs were almost entirely passed through to US buyers. The hosts also examine how tariff revenue compares to income tax revenue, and why economists generally see tariffs as a regressive and inefficient way to raise government funds. Specific examples include washing machines and steel, where tariffs led to higher prices even for domestically produced goods. The episode concludes with a discussion of how tariff policy intersects with corporate tax planning and supply chain reshoring. #Tariffs #ConsumptionTax #TradeWar #ImportDuties #HiddenTax #ConsumerPrices #RegressiveTax #TaxPolicy #Economics #FederalReserve #PetersonInstitute #WashingMachineTariffs #SteelTariffs #Reshoring #SupplyChain #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo