Grant Cardone: Here’s Why I Believe Trump’s Tariffs Will Help the US Economy
Written by
Gabrielle Olya
Edited by
Molly Sullivan
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
President-elect Donald Trump has been vocal about his plans to enact tariffs on foreign imports from certain countries on day one of his new term.
“On Jan. 20, as one of my many first executive orders, I will sign all necessary documents to charge Mexico and Canada a 25% tariff on all products coming into the United States and its ridiculous open borders,” he posted on Truth Social. He also posted that he plans to charge China “an additional 10% tariff, above any additional tariffs, on all of their many products coming into the United States of America.”
Some experts believe that these proposed tariffs will wreak havoc on the U.S. economy.
“The measures proposed … could hit a number of strategic U.S. industrial sectors hard, add approximately $272 billion a year to tax burdens, raise goods prices, lift interest rates and sap strength in an already-vulnerable household sector,” Karl Schamotta, chief market strategist at Corpay Cross-Border Solutions, told CNN.
However, other experts, including private equity fund manager and real estate investor Grant Cardone, believe Trump’s proposed tariffs will ultimately benefit the domestic economy.
Cardone: Tariffs Will Lead To Fair Pricing and More Opportunities for Domestic Businesses
Cardone — who has sent a proposal to the Trump administration to implement a federal program, Make Americans Wealthy Again, which would teach financial basics to all Americans — believes that rules of supply and demand will counteract the possible price hikes that could come from tariffs.
“At the end of the day, supply and demand is controlled by the consumer,” he told GOBankingRates. “As long as there’s enough supply and there’s enough demand, the appropriate price will be set, and the tariff will not change that.”
If prices do get higher than consumers are willing to pay for an imported version of a good or service, this opens up a new opportunity for U.S.-based businesses, Cardone said.
“When the price gets too high to import the good, somebody here that finds that good valuable will build it,” he said. “They’ll figure out a way to build it and deliver it affordably. It’ll make things fair here.”
Cardone also noted that it’s up to the consumer whether or not they are willing to pay for something, and tariffs can’t take away this choice.
“The consumer, at the end of the day, is the ultimate decision maker on whether they buy a product or service,” he said. “[Trump is] going to tear up things that we can build here, or things that we’re already building to level the playing field.
“But if my wife continues to buy Chanel, no matter what the price is, she is the ultimate reason Chanel prices are going up, not the tariff,” Cardone continued. “If he puts a tariff on Chanel, for instance, and a Chanel bag goes from $5,000 to $50,000, if my wife continues to buy that bag because she finds it valuable, that’s on her, not the tariff.”
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
