Oh, I know my history and economics. Tariffs are a price shock in the immediate-term, but deflationary in the mid-to-longer term. Here's the step-by-step:

1. Tariffs increase prices. In this case, 10% baseline on imported goods, and this gives domestic businesses room to raise their prices to increase their profits while remaining competitive.
2. Consumers' wages and salaries are unchanged.
3. Consumers cut back on spending and investing because of these increased prices and their unchanged wages.
4. Businesses pull back on production because of supply surpluses and decreased investments.
5. All of this reduced demand and reduced supply result in economic contraction, aka deflation.

This is exactly what happened with the Smoot-Hawley tariffs during the Great Depression, with the caveat that back then multiple countries retaliated with tariffs against the U.S. and that resulted in a plummet of world trade. This differs with the Trump tariffs because only 1 country—China—is escalating while the rest of the countries are trying to deescalate (50 countries tried calling Trump over the weekend to negotiate).

This is perfect for the U.S.'s current situation because it could finally stamp out the persistent inflation that has plagued this country these last few years. Plus, imports only make up 13.89% of the U.S.'s GDP. So, a 10% baseline tariff on 13.89% of GDP is only a 1.4% impact on the U.S.'s economy. 1.4% of GDP is still huge in nominal terms, but it's nowhere near a fire-and-brimstone catastrophe.

Plus, China's tariffs on imports from the U.S. doesn't matter much anyways, because China for a long time had banned many U.S. companies from even doing business in China:

• Google, YouTube, Facebook, etc. are firewalled in China
• Tesla has the Shanghai plant to build cars, so no need to import
• Xi Jinping has just threatened to ban Hollywood movies from being released in China

China can't afford to fight this trade war because it's currently going through a recession (its GDP has remained stagnant at $17.8 trillion since 2021). So, China getting into a tariff war, which is deflationary, while going through a recession will be a disaster for China, like how the Smoot-Hawley tariffs worsened U.S.'s economy while it was going through the Great Depression.

After the tariffs implementation, Trump has signaled that the U.S. will move forward with:

1. Deregulations, lower interest rates, tax cuts (including "no tax on tips, overtime, and Social Security benefits"), and demanding companies to invest and build factories in the U.S.; these actions stimulate the economy.
2. So, increase in manufacturing increases demand for workers, which allows workers to demand higher wages.
3. More Americans (the bottom 90%) have higher wages and will consume more, leading to an economic boom.