The Telegraph, one of the UK’s most conservative newspapers, has published a sharply critical editorial by columnist Matthew Lynn, accusing President Donald Trump of implementing “the biggest tax hike in global history.”
Lynn argues that Trump’s second term is off to a much worse start than his first, which was defined by traditional Republican policies like tax cuts and deregulation.
Now, he says, Trump is aggressively pushing tariffs on America’s largest trading partners, a move that will ultimately hurt consumers.
“The most likely outcome is that the increased costs will be passed on to consumers through higher prices,” Lynn writes.
“Either they’ll pay more for imported goods, or prices will rise across the board as U.S. companies lose the incentive to boost productivity due to the protection offered by tariffs.
And if tariffs generate $600 billion annually, that’s a massive sum, even for an economy as large as the United States.”
Lynn warns that the situation could worsen if Trump attempts to replace the income tax with tariffs.
“Even if Elon Musk somehow slashes $1 trillion from the budget, tariffs would still need to be five or six times higher than anything proposed so far just to cover Washington’s yearly spending,” he explains.
“To fully replace the federal income tax, tariffs would have to be at least 100 percent, possibly more.
At that level, they would wreak havoc on the global trading system. And, to state the obvious, if trade collapses due to extreme tariffs, tariff revenue would disappear as well.”
Lynn also expresses concern that Trump is pushing these tax hikes without any clear plan for offsetting the impact with tax cuts elsewhere to ease the burden on consumers and businesses.
“Trump is about to impose a massive tax increase, and the harsh reality is that, like any other tax hike, it will crush the American economy,” he concludes.
Disclaimer- Our team has thoroughly fact-checked this article to ensure its accuracy and maintain its credibility. We are committed to providing honest and reliable content for our readers.