Fact Check: Trump's tariffs don’t cause inflation because of patriotism buying.

Fact Check: "Trump's tariffs don’t cause inflation because of patriotism buying."

What We Know

The claim that President Trump's tariffs do not cause inflation due to "patriotism buying" was made by White House economic advisor Kevin Hassett. He suggested that American consumers are increasingly purchasing U.S.-made goods, which he believes mitigates the inflationary impact of tariffs (source-3, source-5). However, economic analyses indicate that tariffs generally lead to higher prices for consumers. The Penn Wharton Budget Model projects that Trump's tariffs will reduce long-run GDP by about 6% and wages by 5%, resulting in significant economic losses for households (source-1).

Moreover, the tariffs are expected to raise prices on imported goods, which could lead to inflationary pressures. While some businesses have managed to absorb costs temporarily, the overall expectation is that tariffs will eventually contribute to price increases (source-2, source-4).

Analysis

The assertion that patriotism is preventing inflation due to tariffs lacks substantial empirical support. While Hassett's comments imply a positive consumer response to tariffs through increased purchases of domestic goods, economic models typically show that tariffs act as a tax on imports, leading to higher prices for consumers (source-1).

The credibility of Hassett's claim is questionable, as it relies on anecdotal evidence rather than robust economic data. The Penn Wharton Budget Model, which is a reputable source, indicates that tariffs will likely lead to a reduction in imports and a corresponding increase in domestic prices. This model suggests that the economic burden of tariffs will primarily fall on consumers, contradicting the idea that patriotism can offset inflationary effects (source-1).

Furthermore, while some businesses may temporarily absorb costs to maintain sales, this is not a sustainable strategy in the long term. As noted by various economists, the longer tariffs remain in place, the more likely it is that prices will rise, leading to inflation (source-2, source-4).

Conclusion

Verdict: False
The claim that Trump's tariffs do not cause inflation due to patriotism buying is misleading. Economic evidence suggests that tariffs typically lead to higher prices for consumers, and while some may choose to buy American-made products, this does not negate the inflationary pressures created by tariffs. The reliance on anecdotal evidence and the lack of robust supporting data further undermine the validity of this claim.

Fact Check: Trump's tariffs don’t cause inflation because of patriotism buying.