Trump's Tax Cuts and Tariff Hikes Raise Economic Concerns

Trump's Tax Cuts and Tariff Hikes: President Donald Trump will need to convince Republican senators, global investors, voters and Elon Musk that he will not encumber the federal government with debt by his multi-trillion dollar tax breaks package. So far, the financial market response has been guarded.

At the same time, Trump’s doubling of tariffs on foreign steel and aluminum could hit Americans in an unusual place: the grocery aisle. The announcement Friday of a whopping 50% tariff on these imports sparked fears that big ticket purchases from cars to washing machines and houses could take a big price hit.

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President Donald Trump has to find ways to sway Republican senators, international creditors, voters and even Elon Musk that he isn't going to drown the federal government in debt with his multitrillion-dollar tax breaks proposal.

Thus far, financial markets have been skeptical as Trump evidently doesn't have the ability to cut spending as he said he would.

The tax and spending cuts that recently passed the House would add $5.1 trillion to the national debt over the next decade, according to the Committee for a Responsible Federal Budget, a watchdog group.

President Donald Trump's doubling of tariffs on foreign steel and aluminum could impact Americans in unexpected places: grocery aisles.

The announcement Friday of a massive 50% tax on those imports raised fears that major purchases like cars, washing machines and houses would see major price hikes. But, those metals are so prevalent in packaging that they will likely push prices higher in consumer products from soup to nuts.

"Part of the resulting increased grocery costs would be one of the ripple effects," says Usha Haley an expert in trade and a Professor with Wichita State University, who added that tariffs could increase costs in all sectors and continued to distance allies "without promoting a long-term U.S. manufacturing renaissance."

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Trump's latest term as president has coincided with an unprecedented frenzy of tariffs imposed, threatened and often removed, in a lightning-quick succession, it would take a superhuman effort to comprehend. It was noted Trump requested the latest tariff increase to "further secure the steel industry in the United States."

Trump noted he was rescinding the nomination of billionaire tech entrepreneur Jared Isaacman, who is associated with Trump adviser Elon Musk, to lead NASDA, stating he made the decision after completing a "thorough review" of Isaacman's "prior associations."

It was unclear what Trump was implying in this regard, and the White House did not respond to emailed request for clarification.

“After a thorough review of prior associations, I am hereby withdrawing the nomination of Jared Isaacman to head NASA,” Trump wrote late Saturday on his social media site. “I will soon announce a new Nominee who will be Mission aligned, and put America First in Space.”

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