Elon Musk, the CEO of Tesla and SpaceX, has expressed agreement with former President Donald Trump's economic proposals, acknowledging the potential for short-term consumer pain due to the implementation of universal tariffs on imports.
Musk believes that while immediate price increases on consumer goods are likely, the long-term benefits will outweigh these initial challenges.
Howard Lutnick, CEO of Cantor Fitzgerald and a co-chair of the Trump-Vance 2025 transition team, has also recognized that such tariffs would raise prices on imported goods, effectively acting as a short-term sales tax on consumers.
He noted that while higher prices might encourage consumers to opt for domestic products, this strategy would falter for items not produced in the U.S., leading to unavoidable price hikes.
Senator JD Vance, Trump's running mate, has echoed the sentiment that any consumer losses incurred from tariffs could be offset by potential wage increases.
Despite concerns raised by economists and analysts about the potential consequences of Trump's proposed policies, the Trump campaign has dismissed claims that his policies would lead to short-term economic pain.
The Republican National Committee has asserted that opposition to tariffs stems from a lack of commitment to prioritizing American workers.