Trump suggests tariffs would lower US childcare costs in major economic speech
Former President Donald Trump proposed raising tariffs on foreign imports as a key solution to several U.S. economic challenges, including the rising cost of child care. Speaking to business leaders at the Economic Club of New York on Thursday, Trump outlined his vision for what he called a "national economic renaissance," suggesting tariffs would generate trillions of dollars in revenue to address various issues.
Trump responded to questions about his plans to make child care more affordable by pointing to tariffs. He claimed that while child care costs are often highlighted as significant, the revenue generated from higher tariffs would more than cover such expenses.
"Child care is child care, it’s something you have to have in this country. You have to have it," he said. Then, he said his plans to tax imports from foreign nations at higher levels would "take care" of such problems.
"We’re going to be taking in trillions of dollars, and as much as child care is talked about as being expensive, it’s — relatively speaking — not very expensive, compared to the kind of numbers we’ll be taking in," he said. "We’re going to be taking in trillions of dollars," Trump said, indicating his belief that tariffs would resolve economic strains without raising consumer costs.
Economists express concern over tariff proposal
While Trump has long promoted tariffs as a way to boost American manufacturing and protect jobs, experts have raised concerns about the potential economic fallout. Economists, including Kimberly Clausing of the University of California, Los Angeles, warn that higher tariffs could lead to increased costs for businesses and consumers, potentially worsening inflation and leading to job losses.
The United States had $3.8 trillion worth of imports in 2022, and Trump has suggested implementing universal tariffs of at least 10%, though details remain unclear. The right-leaning Tax Foundation estimated in June that Trump's proposed tariffs could equate to a $524 billion annual tax hike, leading to the loss of an estimated 684,000 jobs.
Trump’s broader economic plan
Beyond tariffs, Trump’s economic agenda includes reducing regulations, particularly in the energy sector, and cutting corporate taxes for U.S.-based companies. He promised to issue a national emergency declaration to ramp up domestic energy production and to eliminate ten current regulations for every new one implemented.
Additionally, Trump vowed to slash the corporate tax rate to 15% for U.S. manufacturers, down from the current 21%. He also took aim at Democratic presidential nominee Kamala Harris, accusing her of pursuing an "anti-energy crusade" that would hurt American families and drive up energy costs.
Harris campaign responds
Harris' campaign has criticized Trump's economic proposals, arguing they would hurt the middle class and lead to a significant expansion of the national debt. Harris advocates for raising the corporate tax rate to 28% to promote entrepreneurship and middle-class prosperity, positioning her platform as more sustainable in the long term.
Both candidates' economic plans are expected to take center stage in the upcoming presidential debate, as Trump continues to push his America First agenda, while Harris emphasizes her focus on economic fairness and job creation.