Tariffs come in as a trigger for domestic industrial revival. The thinking is: by making imports expensive, you create room for U.S. producers to step in
But here’s the problem: American factories can’t scale up overnight.
So in the short term, consumers will face higher prices.
The administration knows this.
That’s why they’re front-loading the pain now, betting that by 2026, the benefits will be visible.
In the meantime, they’re offering some near-term relief.
Tax cuts have already been floated to help offset the cost burden on households.
And while risky, currency devaluation may follow later to make imports cheaper without lifting tariffs.