Paul Krugman

He may be able to collect enough money from these other tariffs that the revenue hole is filled, although I don't think that exonerates him from having to refund the money already collected.

But he may be able to replace the revenue, but he doesn't regain the flexibility.

No, it's not.

This is a sales tax.

A tariff is, in the end, a sales tax.

There's a lot of moving parts in the way that works out, but it's in the end.

The Trump tariffs are about, in total, the tariff increase is around 0.9% of GDP.

Yeah, no, that's right.

It's a little bit.

And if you actually kind of work it through.

But the I am because it's a tax hike.

The tariffs are slightly contractionary.

maybe more than slightly.

That's one of those things where you have to ask what else is going on.

But how does this affect the Fed?

I mean, if the tariffs weren't there, the Fed would probably have lowered rates already and so on.

But it's certainly, it is a

A significant increase in the cost of living, not a gigantic increase in the cost of living, but everybody's cost of living is somewhat higher because of these tariffs.

And, you know, that will go away.

But these other tariffs would also be a tax on on the American people.