America at a Crossroads: The True Cost of New Trade Policies, Tax Hikes, and Economic Power Plays
- Delilah Tanner
- Feb 3
- 5 min read
America is entering dangerous economic territory, and every citizen will feel the effects. Trade wars are escalating, taxes on middle-class families are set to rise, and billionaires are gaining access to sensitive government systems—all while international aid is being dismantled. The impropriety isn’t coming from foreign adversaries, it’s coming from inside the house. These shifts will impact every American, regardless of party affiliation, and the consequences will be immensely felt in the coming days and weeks.
It’s time to face the truth: working- and middle-class Americans will bear the burden of these policies, while the wealthiest consolidate power and evade responsibility.
The Hidden Tax of the Trade War and the Reality of the Why
The administration has imposed new tariffs on goods from Canada, Mexico, and China—25% on our closest allies and 10% on Chinese imports. The justification? A stronger domestic economy, stronger boarders, and lowering fentanyl coming in from China. The reality? Tariffs function as hidden taxes on consumers, as companies pass the added costs onto everyday Americans. Ultimately, they won't add any significant impact to the fight already taking place to combat these issues.
Meanwhile, the fentanyl crisis has already been under way with a variety of measures to help combat it; Such as bilateral agreements with China, in which they are implementing their own war on drugs, bringing a crack down on illicit labs and reclassifying all related substances. Our Homeland security has been partnered with Mexico and Canada and other allies to track the fentanyl supply chains, as well as a variety of other measures that are in place.
This is a very real issue, impacting a variety of countries, who are working together to find an end. Proactively protecting their boarders, not just from illicit substances but also those seeking asylum or engaging in human trafficking. Canada and Mexico, in particular, have already taken significant steps to secure their borders, enhance intelligence-sharing, and invest in advanced surveillance technology to prevent illegal crossings. The Safe Third Country Agreement, joint enforcement task forces, and expanded border security infrastructure have been in place long before these tariffs were introduced.
Rather than providing a meaningful solution, the tariffs penalize close allies who are already active partners in tackling these issues. Meanwhile, the burden falls on American consumers, who will face higher prices while the core problems—illicit drug trafficking and border security—continue to require strategic, cooperative efforts rather than financial penalties. Addressing the fentanyl crisis and boarder crossings demands sustained international collaboration, not economic strain disguised as security policy, that simultaneously railroads the working class economically.
What Does This Mean for You?
High tariffs mean a high prices on necessities, a comprehensive list:
Produce: Avocados, bell peppers, cucumbers, limes, mangos, strawberries, raspberries, tomatoes and other fruits and vegetables.
Grains and Canola Oil: *Wheat, Oats, Barley. Approximately 63% of American grains are imported from Canada.
Meat and Poultry
Alcoholic Beverages: Tequila, mezcal, beer (including brands like Modelo and Pacifico), and other spirits from Mexico.
Automotive Components and Vehicles: Vehicles and auto parts imported from both countries; this includes GM, FORD, STELLANTIS (Chrysler, Dodge, Jeep, RAM)
Oil and Gas: Crude oil imports from Canada, now at a lower tariff rate of 10%.
Building costs and textiles: Concrete, Lumber and other wood products
Chemicals used in plastics manufacturing, such as Polyethylene (PE) and Polypropylene (PP)
Where does this go from here?
• Increased production and sales costs: U.S. businesses relying on imported materials and goods will either have to bare the cost and struggle, leading to job cuts or pass the cost on to consumers, leading to price hikes across the board.
• Retaliatory tariffs: Countries affected by U.S. tariffs are responding with their own, harming American exports and industries. (AP News)
This isn’t speculation—it’s already happening. After the new tariffs were announced, the stock market plummeted, and global markets responded with sharp declines.
S&P 500: Decreased by 1.7%.
Dow Jones Industrial Average: Fell by 557 points.
Nasdaq Composite: Dropped by 2.1%.
Historically, tariff revenues have been used to offset deficits or fund broader government programs rather than directly addressing the issues tariffs claim to solve. With that understanding, these downturns in the market were primarily driven by investor concerns over the newly announced tariffs, on imports from Canada, Mexico, and China, which are set to take effect on Tuesday. (AP News)
This doesn't bode well for a strong American Economy. With us respectively importing roughly $300 billion from Canada and Mexico combined, it's clear the tariffs will touch every part of every day American life.
Tax Hikes on Working Americans
While corporations continue to benefit from tax loopholes, everyday Americans are facing a 22% increase in personal income taxes if key tax cuts expire. That means:
• Families earning the median income ($80,610) could pay an extra $1,695 annually—the equivalent of nine weeks of groceries.
• The financial squeeze on working Americans will worsen inflation as households have less discretionary income.
These are harsh realities for the Americans already struggling, nationally. These policies also directly contradict campaign promises to lower taxes and reduce the cost of living. (Ways and Means Committee)
Elon Musk, Government Access, and the Disappearance of USAID
As America enters this economic battle, and tariff war of 2025, one of the wealthiest individuals in the world—Elon Musk—has been granted access to the federal payment system, managing trillions in Social Security, Medicare, and government payrolls. At the same time, his team has attempted to gain access to classified intelligence within SCIFs (Sensitive Compartmented Information Facilities).
This is happening as the administration shuts down the U.S. Agency for International Development (USAID), a move that not only weakens diplomatic relations but signals an isolationist shift at the worst possible moment. (PBS)
The overlap of economic turmoil, tax burdens, and increased private influence over government systems paints a concerning picture of who is truly benefiting from these changes—and it’s not the average American. This raises alarm bells from economist and historians alike.
What Can You Do Right Now?
The worst thing Americans can do is sit back and let these changes unfold unchecked. Here are three ways to take action:
1. Educate Yourself & Others
• Share this information. Many Americans won’t feel the impact immediately, but when they do, they need to know who is responsible.
• Read reliable sources and fact-check economic claims made by policymakers.
2. Contact Your Representatives
• Call, email, or visit the offices of your elected officials and demand they fight against increased tariffs, tax hikes, and unchecked government-private sector collusion.
• Ask them where they stand on these issues—they work for you.
3. Support Organizations Fighting for Economic Fairness
• There are watchdog groups actively monitoring these economic shifts and advocating for fair policies. Supporting them strengthens the fight against policies that harm working Americans.
4. Prepare for Midterms
• Educate yourself on policy, not personality. Look beyond party labels. Policies directly affect your taxes, wages, healthcare, education, and rights.
• Follow the money. Research which corporations, lobbyists, and industries are funding candidates. (opensecrets.org)
• Fact-check claims. Use nonpartisan sources like Ballotpedia and Politifact to verify campaign statements.
This is not about partisanship—it’s about economic and democratic survival. The policies being enacted today will shape the financial future of every American. The question is: Will we stand by and watch, or will we take action before it’s too late?
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