“If the tariffs raise prices on American consumers, then that will negate part of the positive impact of the tax cut. It’s the government giving the tax cut with the right hand and taking it away with the tariff with the left one,” said Stephen Moore, a distinguished visiting fellow at The Heritage Foundation and one of the architects of the Trump campaign’s tax plan.
Conservatives and business groups, which were central to the political push for tax reform bill, now worry that the potential tariffs and threats to pull out of trade agreements will overshadow their efforts to convince Americans of the benefits of the tax bill.
“The evidence of the tax cut working is getting yanked away. Conservatives and business groups aren’t sure what to do about it because no one wants to be the target of a Trump tweet,” said one conservative tax lobbyist.
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