>>21943787I see you took East Asian studies instead of Economics as college electives, so let me school you.
tariff = excise tax. 25% tax on Canada = Americans pay 25% tax on cars built in Ontario = inflation
Tax cut = government spending because gov't print money to make up for the revenue shortfall. This money competes with private sector (called crowding out), so interest rate goes up (10 year yield going up), and more money chasing fewer goods is inflation. Basically causes stagflation, the worst kind of inflation
