With his usual threats, Donald Trump is trying to ward off the dire reality that he has created and is bearing down on him. He can clamp migrants in foreign gulags, coerce white-shoe law firms into becoming his pro bono serfs and try to simply erase the National Endowment for the Humanities, but he can’t rescind his harm to the economy. Trump can slash the National Weather Service, but he can’t stop the storm he’s whipped up. He’s shouting into the wind at his twister.
No matter how much he might lower his draconian tariffs after his 90-day breathing spell, the velocity of damage is just building. It’s not a mistake that can be rectified. There’s no do-over. It’s not a golf game at one of his clubs where he gets endless mulligans and is declared the champion. Nor does Trump really want to draw back completely from his tariffs as if he never had proudly displayed his “Liberation Day” idiot board.
When the Walmart CEO inevitably announced that prices would have to be raised as a result of Trump’s tariffs, Trump warned: “Between Walmart and China they should, as is said ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!”
Trump has falsely insisted that tariffs are levied on foreign importers. But Walmart demonstrated the indisputable fact that tariffs are price increases passed on to consumers. They are a tax. Trump is furious at the early indication of the renewed inflation and price rises that are coming. His natural response, of course, is an attempt at intimidation.
The tariffs are a shakedown by which Trump could exercise his control over corporations that must scrape and bow before him, asking for targeted relief in exchange for, perhaps, payments to his personal political action committee, or, perhaps, throwing money into the kitty of his various financial endeavors, his crypto firm and meme-coin scheme. According to his wishful thinking, businesses should “eat the tariffs” to cover up his falsehood and maintain his popularity. For his sake, shut up and “eat” it. Trump is at war with the corporations’ bottom line.
He can fool all of the people some of the time, and some of the people all of the time, but he can’t fool the bond market any of the time. When Moody’s Ratings downgraded the US credit rating, the Trump White House put out a statement attacking Moody’s “credibility” while blaming “Biden’s mess”. Moody’s reasons were an oblique criticism of Trump’s pending “big, beautiful bill” for massive regressive tax cuts in addition to his tariffs, which have led to the suspension of any further cuts in interest rates from the Federal Reserve.
