Donald Trump's Empty Promises Are Catching Up to Him

[Bernardo de La Paz]

3. Actually, ... tariffs make domestic goods more expensive too, plus it's a regressive tax on the poor & middle

Tariffs make foreign goods more expensive. That means some demand shifts to domestic products. Domestic manufacturers in the short to medium term can react in two ways or a blend.

A) If they have capacity, they increase production while maintaining prices, lowering their unit cost, increasing profit.

B) They could also raise prices to make more profit per item.

They are not going to lower prices in reponse to tariffs. Naturally, there is no guarantee of increased profits since overall demand may decrease as consumers and businesses curb buying somewhat. It may become large enough to be noticed, hence a reduction in growth or even a contraction (recession).

Tariffs are a regressive tax. Poor people and middle class people spend a higher proportion of their income on goods than do the well-off. The latter buy goods but beyond that they buy real estate and financial instruments and artwork. Those aren't taxed by tariffs.