On Jan. 20, 2025, President Trump promises the following action: “I will sign all necessary documents to charge Mexico and Canada a 25% tariff on all products coming into the United States.”

Either he still doesn’t understand who pays tariffs or he is deliberately misleading the public. I can accept either scenario. Neither country will pay a dime to the U.S. Treasury as a result of these tariffs. The importing entity, not the exporting country, pays the tariff. An accurate statement would be, “I will charge any company purchasing goods from Mexico and Canada an additional 25% of the purchase price to be paid to the U.S. Treasury as a tax on such goods.” The company may then raise the price of goods sold to the public to avoid lower profits, or accept the lost profitability. Fat chance on the latter action.

The purpose of the tariffs is to punish Mexico and Canada. However, until Mexico and Canada lose business linked to higher prices passed on to the American consumer, the American consumer must first be punished. Only when business is lost will Mexico and Canada be hurt, providing they do not impose like tariffs on U.S. imported goods to compensate for their losses. Once again, fat chance this won’t happen.

Corporate America will protect its profits and we will pay the tariffs by way of higher prices. Imposing higher inflation to achieve political ends is like the ship captain who declares “Floggings will continue until morale improves.”

Don’t forget, we voted for this.

Tom Foley
Cumberland Foreside