Jim Rickards, economist and author of the best-selling book “Currency Wars,” explained that tariffs are extremely good for the U.S. to the detriment of other countries. In a recent podcast, Rickards stated that contrary to the idea of tariffs being a sales tax for the American people, it primarily affected the dynamics between the importer/distributor of goods and the producer in countries like China, who shared the losses of these increased expenses. Rickards stressed that price increases would drive out consumers from the market, affecting businesses and the economy alike. “The tariff does not fall on the consumer, it falls on the producer or the importer or it’s split between them in some fashion; so the idea that it’s inflationary is not true,” Rickards concluded.
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