Grant Cardone Says 'Tariffs Do Not Make Goods And Services More Expensive - Only The Consumer Can Do That'

Grant Cardone recently sparked a debate over tariffs and their impact on consumer prices. In a post on X, Cardone argued that tariffs are not a tax on consumers but rather an equalizer for global trade. His comments challenge the widely held belief that tariffs directly drive up prices for American consumers.

Cardone's View on Tariffs and Consumer Spending

In his post on X, Cardone wrote, "A tariff is NOT a consumer tax, it is an equalizer for global trade. Tariffs do not make goods and services more expensive — only the consumer can do that."

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Cardone shared his perspective during an interview with NBC's affiliate in San Jose, California, where he explained that tariffs only affect consumer costs if people continue to purchase goods and services despite price increases. Using an example of a rubber duck imported from China, Cardone illustrated how tariffs could lead to higher prices — but only if consumers choose to continue buying the product.

"Well, just understand that the tariff is not imposed on you if you don’t buy the goods and services," Cardone told NBC. He said if China sends the U.S. a rubber duck that costs the consumer a dollar, they're going to buy it because it's inexpensive. But if Trump imposes a $99 tariff on that duck, raising the price for consumers, the consumer can choose not to buy it. "At which point somebody here would start building rubber ducks for a cheaper price."

Cardone also noted the imbalance in global trade policies, highlighting how U.S. exports often face steep tariffs abroad. He shared an example of Mercedes-Benz, which can ship cars to the U.S. without facing tariffs, while American vehicles like the Ford F-150 encounter high tariffs in European markets. Cardone argued that tariffs are a way to "level the playing field" in global trade.

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Economists See Tariffs Differently

While Cardone presents tariffs as a tool to balance trade, many economists view them as harmful to the U.S. economy. According to CNBC, Moody's Chief Economist Mark Zandi described tariffs as a "lose-lose" for American jobs and industry.

"There are no winners here in the trade war we're seemingly being engulfed in," Zandi said.

The Trump administration has pursued broad tariffs on trading partners, including China, Canada, and Mexico, aiming to protect domestic industries. However, economists argue that tariffs increase production costs, which can lead to higher consumer prices and job losses in sectors that rely on imported materials.

Lydia Cox, an assistant economics professor at the University of Wisconsin-Madison, wrote that tariffs have "collateral damage" beyond their intended targets. For example, steel tariffs imposed during Trump's first term raised domestic steel prices by about 2% but also increased costs for industries that rely on steel, such as automobile manufacturing and construction.

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The Bigger Economic Picture

The broader impact of tariffs on the U.S. economy remains mixed. While some targeted industries, such as steel production, have benefited from protectionist policies, other sectors have faced higher costs and retaliatory tariffs from trading partners.

Cardone's argument suggests that consumer behavior plays a key role in the outcome of tariff policies. If consumers shift their spending habits or domestic producers step in to replace imported goods, tariffs could create opportunities for U.S.-based businesses.

However, economists caution that the long-term effects of tariffs — including potential trade wars and increased production costs — may outweigh any short-term benefits.

Cardone's take challenges the conventional wisdom on tariffs, sparking a broader conversation about how global trade policies and consumer choices intersect in shaping the economy.

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