It's Time to Unmask the Trump Tariffs for What They Really Are: A Giant National Sales Tax That Will Hobble U.S. Economic Growth
Author: Steve H. Hanke and Shawn Tully
Outlet: Fortune
Date: August 26, 2025
Hanke and co-author Shawn Tully argue that Trump's tariffs function, in effect, as a giant national sales tax on American consumoption, one that will not eliminate or even meaningfully shrink the U.S. trade deficit. Breaking spending down into its three basic categories, consumption, investment, and government expenditures, the authors show how the added cost burden from tariffs ripples through the economy, ultimately hobbling U.S. economic growth rather than delivering the trade rebalancing the administration promises.
Full Citation:
"It's time to unmask the Trump tariffs for what they really are: A giant national sales tax that will hobble U.S. economic growth," Fortune, August 26, 2025. (with Shawn Tully)