President Trump’s current obsession is tariffs, calling it the most beautiful word in the dictionary despite the potential negative implications.

Trump’s interest in tariffs stems from concerns about the U.S. trade deficit, where we import more than we export. Although this situation can benefit consumers, unfair foreign government policies can lead to serious consequences for American workers.

Trump criticizes other countries’ value-added taxes, often mislabeling them as tariffs, highlighting the economic challenges faced by American companies.

Value-added taxes are common globally, meant to simplify tax collection and minimize fraud. These taxes are relevant to trade deficits as nations refund them on exports and impose them on imports, disadvantaging U.S. trade.

Trump suggests imposing massive tariffs on all imports, but the problem varies among countries due to different tax rates. The U.S. primarily relies on income taxes, whereas trading partners use value-added taxes, affecting U.S. trade.

To address these issues, implementing a value-added tax could encourage exports and discourage imports. Nevertheless, increasing tariffs violates international agreements and risks a trade war, impacting global wealth.

Regardless of the solution, both tariffs and consumption taxes, like value-added taxes, may worsen wealth inequality by burdening the poor disproportionately. This disparity could escalate due to the growing gap between the rich and other classes, a concerning issue for American democracy.

In a democracy, severe wealth inequality could threaten stability, like Thomas Jefferson warned. Trump’s focus on increasing consumption taxes and cutting taxes for the wealthy might exacerbate wealth inequality, echoing the dangers seen in the French Revolution.

Ignoring these warning signs and prioritizing billionaires’ interests over American citizens can have dire consequences. Trump’s emphasis on tariffs worsens this situation, showing a potential path towards increasing wealth inequality and social unrest.