Tariff gambit bets Americans will swallow higher prices

President Trump's sweeping tariffs are expected to raise the costs of cars, chemicals, metals, lumber, pharmaceuticals and other products that American consumers and businesses buy from overseas.

- ALAN RAPPEPORT

But Trump and his advisers are betting that it can sell an inflation-wary public on a pro-positive idea: “Cheap stuff is not the American dream.”

“I couldn't care less if they raise prices, because people are going to start buying American made cars,” Trump said on NBC's Meet the Press show on Sunday in response to fears of foreign car prices spiking.

The notion that there is more to life than low-cost imports is an acknowledgment that tariffs are inflationary. It is also a pitch that the burden will be worth it. Trump's ability to convince consumers that it is acceptable to pay more to support domestic manufacturing and adhere to his “America First” agenda could determine whether the president's second term is a success or a calamity.

But it is not an easy sell. The onslaught of tariffs has roiled markets and dampened consumer confidence. Auto tariffs that go into effect today will add a 25% tax on imports of cars and car parts, likely upending pricing in the sector. Trump has already impacted the life of cars, our homes, our foods and more are expected later this week, where the president announces his “reciprocal” tariffs on major trading partners including those in Asia and Europe.

In confronting years of free trade uncertainty, Trump and his top economic aides have resorted to asking Americans to think about the bigger picture. They espouse the view that Trump's tariff initiatives is particularly necessary after decades of economic torpor and that paying a bit more should be a matter of national pride.

“We may have, short term, a little pain,” Trump said last month as he unveiled tariffs on Canada and Mexico. “People understand that.”