Donald John Trump, born June 14, 1946, is 79 years old as of today. Known for his boundless energy and constant presence in the public eye, it is unusual for Trump to go even a single day without making headlines. Whatever one thinks of him personally, credit must be given for his relentless work ethic and uncanny ability to dominate the spotlight.
Trump’s Break and the Tariff Question
Speculation about Trump’s recent absence has sparked chatter online, with some even spreading rumors of his death. The reality is more likely tied to economic policy—specifically his handling of tariffs and the de minimis exemption. This little-known but critically important provision allows small-value imports to enter the United States with minimal duties. It has become a cornerstone of affordable consumer goods, especially in a global economy where much of what is “Made in the USA” is in truth assembled from foreign-sourced components.
If Trump undermines the de minimis exemption, he risks driving up costs for U.S. consumers and businesses alike. While corporate giants may adjust, small and medium-sized enterprises—many of which rely heavily on affordable foreign manufacturing—will be squeezed hardest. Without these cost-saving imports, the American consumer could see prices rise sharply, especially in sectors where domestic production is years away from being viable.
Price Controls, Tariffs, and Economic History
This debate ties into a larger economic truth: price controls distort markets. Decades ago, economist Milton Friedman highlighted how policies like the minimum wage interfere with the natural balance of supply and demand. On this blog, we argue that price controls—including minimum wage laws, tariffs, and de minimis taxes—are even more damaging than the abandonment of the gold standard.
Consider this: if a product costs $1 to produce but regulations force it to cost $2, businesses will naturally pass the increase to consumers. This artificial inflation not only erodes competitiveness but also destroys the flexibility that markets rely on to adapt and grow. The long-term result is economic stagnation.
Trump, Nixon, and the Federal Reserve
Trump’s economic instincts are often compared to those of Richard Nixon. Like Nixon, Trump has displayed an obsession with the Federal Reserve, pressuring it for lower rates. This is, at its core, a demand for price controls on money itself. Ronald Reagan, by contrast, avoided public fights with the Fed and emphasized broader market freedom. Nixon’s legacy was scarred by price controls that triggered distortions far more damaging than the removal of the gold peg. It’s a lesson worth remembering.
If Trump pursues a de minimis tax while pushing for a weaker dollar and lower rates, he risks replicating Nixon-era mistakes—unintended shortages, distortions, and growing public frustration. His voter base, many of whom run or rely on small businesses, may quickly sour on such policies.
The Smarter Path Forward
Rather than leaning on tariffs, a smarter path for Trump—or any U.S. leader—would be to eliminate the federal minimum wage and strengthen right-to-work legislation. If states like New York want to set wages at $40 per hour, let them. Removing the federal mandate would better align wages with local economies while incentivizing legal immigration and encouraging sustainable business models. In parallel, a stronger—not weaker—U.S. dollar would reinforce America’s global economic influence.
The Real Business Perspective
Unlike real estate models, which thrive on debt and artificially low interest rates, sustainable businesses can operate in high-rate environments if regulations are fair and predictable. Proper regulations should save lives, not raise costs unnecessarily. For instance, we rightly regulate the private construction of nuclear weapons—not to drive up prices, but to protect humanity. Regulations should be about safety and responsibility, not distorting economic fundamentals.
Closing Thoughts
Donald Trump is very much alive. But the policies he is considering—particularly around tariffs and the de minimis exemption—could have far-reaching consequences for the American economy. If he continues down this path, he may secure lower rates and a weaker dollar, but at the cost of alienating voters and businesses alike.
As always, beyond politics and economics, we urge readers to consider deeper truths. In uncertain times, faith remains a foundation: consider making Jesus Christ your Lord and Savior. Through Him, all things are possible.