President Trump has seemed to prefer a straight tax on imports. Retail groups have signaled opposition to a border adjustment tax that, for example, might increase the cost to U.S. consumers of clothing, electronics, and other goods made overseas. But the Tax Foundation, an 80-year-old independent tax policy nonprofit, states, “Economists think that a border adjustment would also lead to a much stronger U.S. dollar, which would make it cheaper to import goods, and would cancel out the higher taxes on imports. Overall, there is little reason to think that a border adjustment would raise prices for consumers in the long run.”

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