Key Takeaways
- Vice President Kamala Harris and former President Donald Trump faced off in their first debate Tuesday.
- The candidates reiterated their economic platforms and didn’t introduce new proposals.
- They sparred on economic topics including tariffs, inflation and student loans.
Vice President Kamala Harris and Former President Donald Trump met for the first time as presidential candidates Tuesday, and economic issues were a central topic of debate.
Investors and other market watchers tuned in as the pair debated for an hour and a half in Philadelphia. The economy was the first topic of the night, and both took the opportunity to repeat their platforms.
Here’s how the candidates sparred over three key economic topics Tuesday night.
Tariffs
Republican candidate Donald Trump doubled down on his tariffs plan at the beginning of the debate.
Trump has called for a broad 20% tariff on all foreign goods and tariffs of 60% or higher on Chinese products. Most economists say tariffs would damage the economy more than they would help since merchants would pass the cost of tariffs along to consumers and give domestic manufacturers cover to raise prices.
He argued his tariffs would take in hundreds of billions of dollars and not cost the American people anything.
“Other countries are going to finally, after 75 years, pay us back for all that we’ve done for the world,” Trump said. “And the tariff will be substantial.”
For her part, Harris said the tariffs would equate to a “sales tax” and said it would cost the average person more money. She said his policies on trade with other countries put the economy at risk during his presidency.
“Well, let’s be clear that the Trump administration resulted in a trade deficit, one of the highest we’ve ever seen in the history of America,” Harris said. “He invited trade wars.”
Inflation
Each candidate blamed their opponent for inflation.
The cost of living has risen significantly since the start of the pandemic, up 21% on average, according to the Consumer Price Index. At the same time, wages grew more than 23%, according to the Bureau of Labor Statistics.
Economists largely say inflation was spurred by constraints in the supply chain during the pandemic and, to a lesser extent, relief programs such as stimulus checks enacted by former President Trump and his successor, President Joe Biden.
Trump said there was “virtually no inflation” during his presidency (prices rose 7.5% over the time he was in office) and inflation has been a disaster for people of every class. For her part, Harris laid out her economic policies and said Trump’s proposals would increase inflation.
Student Loans
Harris has supported Biden’s program of student loan debt forgiveness for federal borrowers, which has forgiven $168.5 billion in student debt, with other proposed relief blocked or delayed by Republican-led legal challenges. The legal challenges to these have left students in limbo as the cases wind their way through the courts.
While student loans weren’t a main focus of the debate, Trump did bring up Supreme Court rejections of Biden’s loan forgiveness plans. “So all these students got taunted with this whole thing. And how unfair that would have been, part of the reason they lost, to the millions and millions of people that had to pay off their student loans. They didn’t get it for free.”