The White House is circulating two graphics celebrating this "trade deal" with the UK. They exemplify what I said earlier about condescending the American taxpayer.

First, they tout greater market access, with UK tariffs on American goods falling from 5.1 to 1.8 percent. Except, UK tariffs were not 5.1 percent. That number refers to the EU’s maximum allowed rate under WTO rules. The true rate was more like 0.5%. The increased access to the UK market is de minimis, at best.

Second, the tariff revenue is referred to as "external revenue." I will say this again: AMERICANS PAY THE TAX. Tariffs are collected at the time of importing, it's INTERNAL REVENUE. To pretend otherwise is a blatant lie.

Third, Trump personally intervened to lower the tax rate on imported luxury vehicles from the UK, namely Rolls-Royce, Jaguars, and Land Rovers. So, am I to understand that luxury vehicles that most Americans cannot afford deserve a lower tax rate than imported Hondas, Hyundais, and Toyotas?

Once again, we see the distortionary problems with tariffs and why they open the door to crony capitalism that is destructive to economic growth and human prosperity.

So, in sum, for virtually zero benefit to American exporters, Americans gained the "privilege" of paying higher taxes, while the super wealthy gain exemptions from those taxes.

This isn't a "deal" that favors Americans; it's a tax increase on the middle and lower class cloaked as a "win" for them. If this is the first of many deals to come, we can expect lower economic growth in the US, with the damage lasting a generation.

See my essay on tariffs here: lianeon.org/p/in-defens…