To you know what (apologies to abrahams and the zuckers).
In One Day, US Taxes Roughly $ 2.4 Trn Worth of Goods (2023 Amounts). Biggest one year Tax increase in dollar terms since… ever, at $ 364 bn (if Trump goes through with plans). Automatic Escalation Clauses if the Target Countries Retaliate (Canada already has declared).
My $ 364 Billion Tax Revenue Increase is based on a Constant Imort Levels. Assuming A (Generously High) Elasticity of One Yields A $ 290 Billion Tax Increase. The former is 1.2% of 2024q4 GDP, the Latter is 1%.
Estimates of the impact, given the reality, from Piie. The author of that study did not believe canada and mexico would retaliate. I think, for the former, that assumption has been obe.
Must say I did not expect the trade war to start in Earnest so quickly. And I did not expect canada and mexico would be the primary targets, when I first wrote up the syllabus. What happened to China as the most eGRegious Trade Policy Offender (A View I Actually Shared)?
This might entail re-arranging my Econ 442 Teaching Plan.
Thanks, Trump!
PS: Can I Freeze Avocados and Tomatoes? Asking for a friend.