Trump’s Tariffs Hit Americans Harder Than Foreign Rivals
Chennai, 22 January
Tariffs are “unproductive, destructive, and ultimately destabilising to the world order,” said Matt Winkler, editor-in-chief emeritus of Bloomberg News, speaking to students at the Asian College of Journalism in Chennai.
In a session titled Trump Tariffs Are More Tangled Than Tying a Bow Tie, Winkler leaned on empirical evidence—the “Bloomberg way,” as he described it—to challenge the economic rationale behind protectionism.
The costs, he argued, are borne largely by Americans rather than foreign exporters. Citing a joint Harvard-Yale study, Winkler said U.S. consumers and businesses absorb about 96% of tariff expenses. He illustrated the point with a simple import of a $10 bow tie from the UK. Once brokerage fees, customs charges and levies are applied, the final price rises sharply, turning a tariff into what amounts to a direct tax on the buyer.
Markets, Winkler noted, have also undermined the political narrative. Despite Donald Trump’s vocal support for fossil fuels, renewable energy stocks have gained roughly 50% during his political tenure, far outpacing the 7% rise in oil stocks. Meanwhile, Trump Media and Technology Group Corp has fallen more than 60% since January 2025.
Winkler linked the company’s decline to a longer business record that includes six bankruptcies, arguing that financial constraints often force strategic retreat. Pointing to the European Union’s resistance to recent trade threats, he said tariff brinkmanship tends to falter when counterparties refuse to concede.
“When the bluff is called,” Winkler concluded, “Trump backs down.”