Trumponomics: A 1600s Idea in 21st Century Clothing

Trumponomics: A 1600s Idea in 21st Century Clothing

Donald Trump’s economic playbook might seem disruptive and new, but in reality, it’s a centuries-old idea with a modern twist. What Trump is attempting isn’t unprecedented — it’s a revival of a long-outdated economic theory known as mercantilism.

Popular in the 1600s, mercantilism promoted the idea that nations should maximize exports and minimize imports to build national wealth. Central to this was the use of tariffs — taxes on foreign goods — to discourage imports and protect domestic industries. Sound familiar?

Trump’s tariffs are cut from the same cloth. But here’s the catch: tariffs aren’t paid by foreign countries. They’re effectively a sales tax passed on to American consumers. When you put tariffs on goods, the prices go up — not for the exporters, but for the people buying them at Walmart, Target, or their local store. It’s the everyday American who foots the bill.

In that way, Trumponomics mirrors what states like Florida already practice: no income tax, but a blanket sales tax that everyone pays, regardless of income. That kind of system might seem neutral on the surface, but it disproportionately burdens the middle class and the poor. The rich can absorb a 6-7% tax on a purchase without blinking. For someone living paycheck to paycheck, it stings.

This is the heart of Trumponomics: shifting the tax burden away from the wealthy and onto the rest. Instead of progressive taxation — where those with more contribute more — it leans toward regressive taxation, where those with less carry a heavier load.

So, while it might be branded as bold, populist policy, Trumponomics is really just mercantilism 2.0 — a policy born in the 1600s, rebranded for the campaign trail, and paid for by everyday Americans.