As President Donald Trump’s reciprocal tariffs take effect, critics warn of rising prices and trade wars. But Grant Cardone, a private equity fund manager and real estate investor, sees a silver lining — especially for middle-class Americans.
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Here’s why he believes tariffs could spark a wave of opportunity.
Tariffs Could Spark a Boom in US Businesses
Cardone believes that tariffs will lead to more opportunities for American-based businesses, as consumers look to buy domestic goods to avoid tariff price hikes. The tariff policy can also allow domestic businesses to thrive since they no longer have to worry about being undercut by low-cost imports. This can be beneficial to middle-class Americans with entrepreneurial aspirations.
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More Jobs and Manufacturing May Return To the US
Tariffs can also create more jobs for the middle class. As demand for American products grows, domestic companies may hire more workers to boost supply. In addition, some foreign companies may set up factories or operations in the U.S. to avoid tariffs, which also would create more jobs.
“It brings jobs back to this country, it brings manufacturing back to this country, it brings opportunity back to the country and it makes it a fair playing field,” Cardone told GOBankingRates while discussing the 10X Wealth Plan, a personalized financial coaching program.
Tariffs Are Avoidable — Unlike Income Taxes
Unlike federal and state taxes, which must be paid, tariffs can be avoided by sticking to American-made products, Cardone said.
“Tariffs will only punish people on a voluntary basis,” he said. “If there’s a tariff on a rubber duck, you don’t have to buy the rubber duck. It’s a choice. If the rubber duck goes from $1 to $100, you do not have to pay that tax. But you had to pay a tax on your income.
“I would rather pay taxes on my expenditures and my choices,” Cardone continued, “than pay taxes on my income.”
According to Cardone, if the middle class avoids buying tariffed goods and benefits from the business and job opportunities, the tariffs would ultimately be a net positive for this class of Americans.
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This article originally appeared on GOBankingRates.com: Grant Cardone: Why Trump’s Tariffs Could Help the Middle Class Thrive
