Article Summary
Barry Diller, the chairman of IAC, expressed his views on President Donald Trump’s tariffs, stating that while he thinks they will “end in tears,” he also believes in the potential benefits of big gambles. Despite concerns from business leaders and the impact on stock markets, Diller suggests giving tariffs “a little good spirit” instead of a negative one. However, research from the Budget Lab at Yale suggests that tariffs may not offset the proposed tax cut bill, and could even significantly increase the debt-to-GDP ratio.
What This Means for You
- Be aware of the potential financial implications of tariffs on American households and the national debt.
- Consider the impact of tariffs on your investments and financial strategies, especially if you’re in sectors heavily affected by trade policies.
- Stay informed on the ongoing negotiations, as temporary lifting of tariffs may signal progress in broader trade agreements.
- In the long term, be prepared for possible tax increases or losses in purchasing power to offset the cost of tariffs and tax cuts.
Original Post
Barry Diller recently shared his thoughts on President Donald Trump’s tariffs on the “On with Kara Swisher” podcast, expressing his belief that they will likely “end in tears” due to the challenges they present for businesses and the economy. Nonetheless, the 83-year-old billionaire and IAC chairman admits to enjoying big gambles. He suggests approaching Trump’s tariffs with a positive attitude, as they could potentially stimulate manufacturing and tax benefits for citizens.
Business leaders, even those who support Trump, have expressed concerns about tariffs’ economic impacts. Stock markets initially tumbled with tariff announcements. According to research from the Budget Lab at Yale, the revenue from tariffs is unlikely to offset the proposed tax cut bill, which could cost the US $3.4 trillion over nine years. If tariff provisions become permanent, the debt-to-GDP ratio would reach over 180% in thirty years, surpassing Japan and Sudan’s current ratios.
In a separate Yale Budget Lab report published on May 12, Trump’s tariffs have been projected to cost the average American household $2,800 per year by 2024 in purchasing power, considering all the countries affected by the policy. limited, 90-day suspensions on China and other trading partners’ tariffs took place in early April and May, respectively, in hopes of reaching broader trade agreements.
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