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'Batsh*t Crazy' Trump Tariffs Should Be Seen as $7,000 Tax Hike on Workers, Says Economist
Instead of strategically imposing tariffs, Trump has chosen to "give the country the most massive tax increase in its history, possibly exceeding $1 trillion on an annual basis."
Apr 03, 2025
As stocks "nosedived" on Thursday, economists, policymakers, and campaigners around the world continued to warn about the impacts of U.S. President Donald Trump's trade war, which includes a 10% universal tariff for imports and steeper duties—that he claims are "reciprocal"—for dozens of countries, set to take effect over the next week.
"This is how you sabotage the world's economic engine while claiming to supercharge it," wrote Nigel Green, CEO of the international financial consultancy deVere Group. "Trump is blowing up the post-war system that made the U.S. and the world more prosperous, and he's doing it with reckless confidence."
As Bloombergdetailed after the president's "Liberation Day" remarks from the White House Rose Garden:
China's cumulative tariff rate of 54% includes both the 20% duty already charged earlier this year, added to the 34% levy calculated as part of Trump's so-called reciprocal plan, according to people familiar with the matter. The European Union's rate is 20% and Vietnam's is 46%, White House documents showed. Other nations slapped with larger tariffs include Japan with 24%, South Korea with 25%, India with 26%, Cambodia with 49%, and Taiwan with 32%.
In Europe on Thursday, "the regional Stoxx 600 index provisionally ended down around 2.7%," while "the U.K.'s FTSE 100 was down 1.6%, with France's CAC 40 and Germany's DAX posting deeper losses of 3.3% and 3.1%, respectively," according toCNBC.
In the United States, CNBCreported, "the broad market index dropped 4%, putting it on track for its worst day since September 2022. The Dow Jones Industrial Average tumbled 1,200 points, or 3%, while the Nasdaq Composite fell 5%. The slide across equities was broad, with decliners at the New York Stock Exchange outnumbering advancers by 6-to-1."
American exceptionalism.
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— Justin Wolfers ( @justinwolfers.bsky.social) April 3, 2025 at 12:14 PM
However, as Economic Policy Institute (EPI) chief economist Josh Bivens noted last week, "because most households depend overwhelmingly on wages from work as their primary source of income and not returns from wealth-holding, the stock market tells us nothing about these households' economic situations."
And Trump's tariffs are expected to hit U.S. households hard, as the cost of his taxes on imports are passed on to consumers.
"Tariffs can be a legitimate and useful tool in industrial policy for well-defined strategic goals, but broad-based tariffs that significantly raise the average effective tariff rate in the United States are unwise," Bivens and EPI senior economist Adam Hersh stressed in a Thursday statement—which also called out Trump for mischaracterizing one of the think tank's 2022 analyses.
"Further, the second Trump administration's rationale, parameters, and timeline for tariffs have been ever-shifting," Bivens and Hersh continued. "As the original post cited by the administration argues, tariffs should not be a goal unto themselves, but a strategic tool to pair with other efforts to restore American competitiveness in narrowly targeted industrial sectors."
Instead of strategically imposing tariffs, Trump has chosen to "give the country the most massive tax increase in its history, possibly exceeding $1 trillion on an annual basis, which comes to $7,000 per household," warned Center for Economic and Policy Research co-founder and senior economist Dean Baker. "And this tax hike will primarily hit moderate and middle-income families. Trump's taxes go easy on the rich, who spend a smaller share of their income on imported goods."
Baker—like various other economists and journalists—also took aim at Trump's claims that the tariffs are reciprocal, explaining:
Trump's team calculated our trade deficit with each country and divided it by their exports to the United States. Trump decided that this figure was equal to that country's tariff on goods imported from the U.S.
Trump's method of calculating tariffs is comparable to the doctor who assesses your proper weight by dividing your height by your birthday. Any doctor who did this is clearly batshit crazy, and unfortunately so is our president. And apparently none of his economic advisers has the courage and integrity to set him straight or to resign.
However, outside Trump's administration, the intense criticism continued to mount, including from groups focused on combating the fossil fuel-driven climate emergency, which also endangers the global economy.
Andreas Sieber, associate director of policy and Campaigns at 350.org, said Thursday that "Trump's tariffs won't slow the global energy transition—they'll only hurt ordinary people, particularly Americans."
"Despite his claims he 'gets' economic policy, his record tells a different story: Tariffs are tanking U.S. stocks and fueling inflation," Sieber added. "The transition to renewables is unstoppable, with or without him. His latest move does little to impact the booming clean energy market but will isolate the U.S. and drive up costs for American consumers."
Allie Rosenbluth, U.S. campaign manager at Oil Change International, similarly emphasized that "Trump's tariffs will hurt working families first and foremost, raising costs for essentials we depend on and threatening to plunge the U.S. economy into a recession. Though Trump pretends to care about the cost of living for ordinary people, his real loyalties lie with his fossil fuel industry donors."
"If he actually cared about energy affordability, he would stop bullying other countries into buying more U.S. liquefied natural gas (LNG), which boosts the fossil fuel industry's profits, but results in increased prices for domestic consumers and pushes us further toward climate catastrophe," she asserted. "The one step countries can take to hit Trump where it hurts most is wean off their dependency on fossil fuels from the United States."
The impact of Trump's new levies won't be limited to working-class people in the United States. Nick Dearden, director of U.K.-based Global Justice Now, pointed out that "Trump has set light to the global economy and unleashed a world of pain, not least on a group of developing countries that will suffer tremendous impoverishment as a result of his punitive tariffs."
"All those affected must come together and stand up to this bully by building a very different international economy that promotes the interests of ordinary people rather than the oligarchs standing behind Trump," he argued. "For all its scraping and crawling, the U.K. got no special treatment here, and the government should learn this lesson fast: They need to stop giving away our rights and protections in a futile effort to appease Donald Trump."
Leaders in the United States are also encouraging resistance to Trump. U.S. Sen. Chris Murphy (D-Conn.) said Wednesday that "this week you will read many confused economists and political pundits who won't understand how the tariffs make economic sense. That's because they don't. They aren't designed as economic policy. The tariffs are simply a new, super dangerous political tool."
Murphy made the case that "the tariffs are DESIGNED to create economic hardship. Why? So that Trump has a straight face rationale for releasing them, business by business or industry by industry. As he adjusts or grants relief, it's a win-win: the economy improves and dissent disappears."
"But as long as we see this clearly, we can stop him. Public mobilization is working. Today, a few Republicans joined Democrats to vote against one set of tariffs," he added, referring to a
resolution that would undo levies on Canadian imports. "The people still have the power."
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'Genocide Alert!' Israel Slammed for Cutting Off Power to Gaza Water Plant
One expert noted that "this collective punishment of civilians" violates the Geneva Conventions as well as a preliminary injunction from the International Court of Justice.
Mar 10, 2025
Outrage over the Israeli government's decision to cut off electricity to a water treatment plant in the decimated Gaza Strip mounted on Monday.
As Common Dreamsreported Sunday, Israeli Energy Minister Eli Cohen said that he "signed an order for the immediate halt of electricity to the Gaza Strip" as part of a policy to use "all of the tools that are at our disposal to ensure the return of all the hostages" taken by Hamas on October 7, 2023.
The Times of Israelnoted that the new move by Israeli Prime Minister Benjamin Netanyahu's government "was mainly expected to affect a single desalination plant, the only facility in the strip still running on a power line supplied from Israel."
Responding on social media Monday, the Peace & Justice Project—founded by Jeremy Corbyn, an Independent member of the U.K. Parliament—condemned the cutoff as Israel's "latest act of genocidal collective punishment against the Palestinian people."
"This latest despicable act must be condemned by all governments and Israel must be sanctioned," the group added.
Also speaking out on social media, Francesca Albanese, United Nations special rapporteur on the situation of human rights in the Palestinian territory occupied since 1967, declared, "GENOCIDE ALERT!"
"Israel cutting off electricity supplies to Gaza means, among others, no functioning desalination stations, ergo: no clean water," Albanese said. "STILL NO SANCTION/NO ARMS EMBARGO against Israel means, among others, AIDING AND ASSISTING Israel in the commission of one of the most preventable genocides of our history."
Unconscionable, and immoral: Israel stops electricity supply to Gaza to ratchet up pressure on Hamas | The Times of Israel www.timesofisrael.com/liveblog_ent...
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— Timothy McBride ( @mcbridetd.bsky.social) March 9, 2025 at 11:53 AM
Izzat al-Rishq, a member of Hamas' political bureau, called the move "a desperate attempt to pressure our people and their resistance through cheap and unacceptable blackmail tactics," according to The Times of Israel.
He tied the decision to Israel halting all humanitarian aid into the Palestinian enclave last week, saying that "we strongly condemn the occupation's decision to cut off electricity to Gaza, after depriving it of food, medicine, and water."
Clean water has been a key issue in Gaza since October 2023. Oxfam said last July that Israel had systematically reduced the water available by 94%, with just 4.74 liters per resident obtainable each day—less than a third of the recommended minimum amount in emergencies.
A Human Rights Watch report from December accuses Israel of "extermination and acts of genocide" in Gaza "by intentionally depriving Palestinian civilians there of adequate access to water, most likely resulting in thousands of deaths."
Netanyahu said that last week's block on aid was done "in full coordination" with U.S. President Donald Trump, who proposed an American takeover of Gaza—a plan that Israeli Finance Minister Bezalel Smotrich said Sunday "is taking shape."
Israel and Hamas reached a fragile three-part cease-fire and hostage-release deal in January. Stage one expired on March 1, and negotiators have not yet agreed to terms for the second phase, but talks are being held in Qatar this week.
"Food cut off, almost all electricity cut off, with the remaining energy now cut off too, in order to cut off water supply. This is a 'cease-fire' Israel-style," said Nick Dearden, director of the U.K.-based group Global Justice Now. "Barbaric collective punishment. Stop all weapons, suspend trade deals, economic sanctions now."
Since we made this statement Israel has announced it is cutting off electricity to Gaza. We say again: the threat of starvation and denial of vital humanitarian aid and services should never be used as a tool of war or a bargaining chip in negotiations. www.quaker.org.uk/news-and-eve...
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— Quakers in Britain ( @quaker.org.uk) March 10, 2025 at 11:51 AM
University of Michigan professor Juan Cole wrote Monday on his website, Informed Comment, that "the Israeli government is cutting Palestinian civilians in Gaza off from staples as a means of pressuring Hamas to release all Israeli hostages with no quid pro quo so that Netanyahu can start bombing again."
"This collective punishment of civilians violates the Geneva Convention[s] and other elements of internationally agreed on laws of war to which Israel is signatory," noted Cole. "It also violates the preliminary injunction of the International Court of Justice, in which Israel also has membership."
Israel faces an ongoing genocide case at the Hague-based court over its deadly blockade and assault of Gaza—assisted by billions of dollars in U.S. weapons. Like his predecessor, Trump's administration is working to send even more arms to Israel.
"Cutting off humanitarian aid to millions of civilians is a war crime. That is exactly what the extremist Netanyahu government is doing now to Palestinians in Gaza," U.S. Sen. Bernie Sanders (I-Vt.) said Monday. "I've introduced resolutions to block billions in offensive arms sales to Israel and will demand votes on these bills."
This article has been updated with comment from U.S. Sen. Bernie Sanders (I-Vt.).
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Starmer Condemned for Pushing 'Cringeworthy' Trade Deal With Lax Tech Regulations
"A tech trade deal with Trump would roll out the red carpet to tech billionaire oligarchy," said one critic.
Feb 27, 2025
Rights campaigners in the United Kingdom on Thursday greeted the news that British Prime Minister Keir Starmer had formally invited U.S. President Donald Trump to the U.K. for a state visit with a call for critics to "take to the streets" as they did during Trump's first term, as advocates condemned Starmer for "cozying up to a dangerous and megalomaniac U.S. president."
"This is the latest embarrassing step in Starmer's attempts to toady to Trump and provide a cloak of respectability to Trumpism," said the Stop Trump Coalition. "The British people reject Trumpism and all those in power who appease Trump. History will not be kind to this club of Trumpism cheerleaders."
Nick Dearden, director of the anti-poverty campaign group Global Justice Now, added that critics plan to "welcome" the U.S. president "in the traditional manner" after Starmer presented Trump with an official invitation from King Charles.
Starmer invited the president during his first meeting at the White House since Trump was elected to serve a second term in November, which came as a bipartisan group of U.S. lawmakers introduced legislation to authorize comprehensive trade talks between the two countries regarding "tariff and nontariff barriers affecting any industry, product, or service sector."
Ahead of the meeting, Starmer told reporters that his message to Trump would be "really simple, that there is no more important relationship for the United Kingdom [than the U.S.], in defense, in security, in trade, in tech, in finance, and so much more."
"We are reforming permitting, getting things built, reducing barriers to investment and growth. And we're open for business, open for investment, and we're determined to help U.S. innovators thrive in the United Kingdom," said Starmer. "So my message is we want to work with you, we want to welcome you to Britain, we want a new partnership, because our history shows that when we work together, great things happen."
The comments were indicative of Starmer's push for cooperation with the U.S. on artificial intelligence and other "advanced technologies," which the new British ambassador to the U.S., Peter Mandelson, has dubbed a plan to "Make Our Economies Great Again," or MEGA.
Dearden called the proposal "cringeworthy" ahead of Starmer's meeting.
"We need to stop this," he said. "A tech trade deal with Trump would roll out the red carpet to tech billionaire oligarchy."
Global Justice Now earlier this month denounced Starmer and Trump for refusing to join 60 international signatories in supporting a declaration backing "inclusive and sustainable" AI at a summit in Paris, with U.S. Vice President JD Vance saying the Trump administration objected to "excessive regulation" of technology and critics suggesting the U.K. Labour government was attempting to curry favor with Trump.
Dearden said last week that any trade negotiations with the U.S. were likely to see Trump "pushing the demands of Big Tech oligarchs who want to avoid tax and regulation in the U.K."
"People in the U.K. don't want to see a wrecking ball taken to our regulations, standards, and public services, especially when we'e talking about new technologies like AI where we're only just beginning to get to grips with the dangers," said Dearden.
The U.K. is pushing to avoid the tariffs Trump has threatened for Canadian, Mexican, and E.U. imports. Trump said earlier this month that he believed differences with the U.K. on trade "can be worked out." He said Thursday that the tariffs targeting Canada and Mexico are set to take effect next week.
Dearden warned last week that with trade talks taking place behind closed doors, "tech titans" will be empowered "to make their demands away from the public gaze."
"Any potential for a Trump trade deal," he said, "must be taken off the table immediately."
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