![]() |
Donald Trump imposed a 10% tariff on the goods provided by residents of Fakaolo, Tokaeau. |
ANALYSIS
Self-described tough guy Donald Trump is punishing a couple of islands with new tarriffs, part of so-called "genius" strategy to bring jobs back to America.
Tokelau Islands, consisting of three far-flung islands in the South Pacific, roughly midway between Hawaii and New Zealand is one of the target nations feeling Trump's wrath. The dependent territory of New Zealand will face a 10% tariffs on any goods entering the United States.
The main industries of the about 2600 residents is fishing and subsistence farming.
I'm pretty sure the residents of Tokelau are shrugging their shoulders wondering what they did to offend the great and mighty United States to be targeted with tariffs.
The economic genius Trump, who bankrupted seven businesses including two casinos, announced Wednesday new tariffs on almost the whole world with the intention to bring jobs back to the US.
Keeling Islands, halfway between Sri Lanka and Australia, with a population of 593, also got hit with a 10% tariff because ... uh ... just, because.
Those two territories should be relieved they didn't get slapped with the 25% tariffs targeting Canadian products.
![]() |
Residents of Tokelau territory transfer imported goods to their atoll. |
Economists can't figure out where Trump came out with his figures that claim the world's tariffs against US products. His sweeping tariff policy would be laughable if not for the havoc it wreaks on a global scale and the impact it will have on the American consumers.
Asian countries were hit hard by Trump's planned tariffs. He said he plans to impose 34% tariffs on China, 37% against Thailand, 17% on the Philippines, 26% vs. India, 46% against Vietnam and 24% on Japan.
By contrast, Europe was slapped with a 20% tariff. Curiously, Russia and North Korea were spared Trump's wrath.
The average cost to American households will mean an increase in spending by thousands of dollars. Didn't Trump campaign on lowering costs? And people believed him despite his record of lying.
So expect an increase in prices for clothes, cars, shoes, artichokes, electronics, washing machines and energy because tariffs are actually paid by the American company importing those goods, not by the country sending those products to the US. American companies such as Nike, Ford and grocers will naturally pass those extra costss onto the consumer -- you and me.
Will the Trump tariffs hurt Americans? Most certainly. Lower income families will be harmed the most by the tariffs because they spend a greater share of their household income on everyday goods.
However, higher-income households will feel the impact by the tariffs announced Wednesday: An average of $4,600 per household per year for those in the top 10% and $1,700 for those in the middle. That $1,700 represents a larger share of the middle-income household's disposable income.