Trump tariffs: Tariff-ic or Tariff-ying?
As a conservative, I am not a fan of tariffs. But unfortunately, they are a necessary tool to push back against foreign tariffs and unfair trade practices. In fact, they are essentially the only tool – or weapon, if you like.
Trump is not wrong when he says that foreign trade policies have been grossly unfair to the United States. In fact, virtually all the top Democrats raising fuss over the Trump tariffs have been on record complaining about the trade imbalances. Among those favoring tariffs in the past to combat unfair trade practices are President Obama and Senate Minority Leader Chuck Schumer, but they never did anything about it. California Democrat Congressman Mike Garcia recently said he favors tariffs in some cases – although not Trump’s. The Democratic National Chairman stated, “we are not against tariffs” even as he criticized Trump’s tariffs. Democrats are being hypocritical and duplicitous on the issue.
The are two features of the current tariff controversy that are not widely reported.
They say that Trump is starting a “trade war.” Doesn’t that more aptly apply to those who have been putting high tariffs on American goods in the past – and using other trade tricks to ban American products? It seems those nations started the trade wars even though the United States did not respond in a timely fashion.
We have also heard a LOT about how damaging tariffs are to the nation that imposes them. According to Democrats, American tariffs will raise prices … cause a recession or stagflation … increase unemployment … destroy business … and essentially crash the economy. So … why aren’t tariffs so damaging to all those other countries that have imposed them? Just asking.
Tariffs have been part of the American experience since the founding of the Republic. President Washington used tariffs as a means of raising money for the fledgling nation. Treasury Secretary Alexander Hamilton saw the benefits in tariffs. In addition to raising revenue, Hamilton saw import duties as a means of protecting domestic businesses from foreign competition.
Later in the 19th Century, the nation split on questions of tariffs – with the north favoring them to protect its industrial base and the south opposing them because they harmed international markets for cotton and other agricultural commodities – and the south was more reliant on imports.
In the 20th Century, America passed the Smoot-Hawley Tariff Act of 1930. The primary purpose was to raise revenues to offset the growing depression. It failed when other nations responded with tariffs – setting off a damaging trade war.
Trump has embraced tariffs as a revenue source and as a protection – and expansion – of the American industrial and agricultural base. He also sees them as a gauntlet to be cast down to trigger negotiation on a wide variety of issues – including illegal immigration and drug trafficking.
What has been disconcerting to the obsessive Trump haters has been the breadth and boldness of his tariffs. He is not fighting this battle incrementally. He is using reciprocal tariffs …. retaliatory tariffs … and punitive tariffs … all at once. And he is not diplomatic in his assessment of the other nations.
He often said that he would be happy to reduce his tariffs — and even eliminate them — if other nations would do the same. He is using tariffs and the threat of tariffs to drive nations to the bargaining table.
Tariffs are a complex business. Every country is unique in terms of their tariff policies and their product mix – between what they need to import and what they want to export.
Let us take coffee as an example. We import a LOT of coffee from Colombia because we are not a coffee-producing nation. We have no coffee industry to protect nor any ability to develop one. Same with chocolate, bananas and other tropical commodities. Trump’s tariff on Colombia seems to be more of a negotiating tool on other issues, such as immigration and drugs.
Tariffs on steel and computer chips make more sense as a means of protecting American industries essential to national security. We are a steel and computer chip importing country – leaving critical industries exposed to the vicissitudes of international conflict. Tiawan produces up to 80 percent of our computer chips. What happens if Beijing invades the island province? Trump tariffs on China in his first term successfully reduced steel imports from the Middle Kingdom from 8 percent to 1.8 percent.
Then there is the issue of cost increases on the American consumer. While tariffs do tend to increase prices, the impact on consumers will vary from product to product … on what businesses absorb of the tariff cost … and how individual consumers adjust their purchases. A person does not have to purchase foreign goods with high tariffs. Cheaper domestic goods will compensate for tariffs.
Some of the concern over the tariffs is legitimate – some not. Trump is not going for measured changes in global trade. He is going for a total disruption and realignment. Like major surgery, it results in some pain, some uncertainty and a recovery period.
Trump’s critics say he does not have a long terms plan … he is unpredictable … he is chaotic. Well Duh! He makes field calls based on how other nations respond. He imposes harsh tariffs. When other nations begin to respond positively, he pulls back – putting the threat in the background. He backs off when he sees progress.
Trump’s 90-day pause can be seen as a response to the stock and bond markets. But also, the positive response he got from a large number of nations. He paused the tariffs on nations that did not retaliate – essentially checkmating retaliation. Some 75 nations have opened the door to negotiations. Pausing the tariffs on those nations makes a lot of sense.
Trump’s adversaries are not responding to his tariffs in an intelligent or consistent manner but responding as the myopic resistance movement – engaging in fearmongering … hysteria … disinformation … and outright lies. They still believe that their road to political success rests on the demonization of Trump and his supporters — and the ruination of his presidency.
It is very early in Trump’s second terms. All of today’s hysterical fearmongering over the stock market … the cost of goods … unemployment … the government bureaucracy … mass deportations … will drift in the rearview mirror in the months and years to come.
His evergreen critics seem to have forgotten that he is just now nearing the end of his first 100 days. That means he has approximately 1360 days to go. Trump is playing multiple chess games while the Democrats are playing Blind Man’s Bluff.
So, there ‘tis.
Some questions:
What tariffs did EU charge before the Trump Trade War?
Why did pre-election Trump say tariffs won’t cause price increases, but post inauguration Trump said prepare for pain?
What’s the plan? You say “seems to be a negotiation tool,” and some gibberish about China attacking Taiwan to protect our chip and steel businesses that just does not make sense. We also know to stop drugs from Canada, illegals that he already stopped, and some other goofy things. but no defined plan, no defined goals. Makes claiming mission accomplished a softball.
As a economics maven, why do you say wage increases raise price dollar for dollar, but tariffs are a more nuanced in price effects?
You say he backs off when he sees progress. Not one person sat at the Trump negotiation table and he blinked for 90 days based on hearing they wanted to come? That’s real progress? Wouldn’t an embossed invitation done the dame deal?
Do you think that the 80 countries will talk, plan, and negotiate with each other over the next 90 days for a common front against Trump? I bet they will have a plan and communicate with each other on progress.
Why no tariffs on Russia?
Why no tariffs on El Salvador? Trump just caused a trade imbalance there, he’s got to know?
Do we have to buy more from countries with trade deficit with us?
Real people are being hurt for this man’s vanity supported by the nutty professor and his sheeples. Even Republicans broke ranks. Think about it; you’re an 18 month probational worker, fired, and cash tight. Boom. tariff war so you sell all at a loss as the falling knife cuts you to the quick. Then he says “kidding,” and puts the market back, announcing it hours before he does it.
You just spent every cent you had and even took a loan to buy Chinese goods before the ax fell so you could sell them at a discount against tariffed goods. Now you’re in hock, can’t sell the crap at a profit after inventory costs since you planned to profit on higher prices. You’re busted.
Real people get hurt by wild swings in the economy. The economy will be fine, the system will seek equilibrium. But many individuals suffer along the way. What’s in your wallet? The billionaire elites running the country will be fine. I am fine. What’s in your wallet? 401 bounce back? Not bloody likely. The disruption you seek hurts people unnecessarily. A good deal maker might want to avoid that.
Makes great TV though. Think his legacy is assured.
Trump told people to buy stocks just before he pumped the market. That should be a crime, if it isn’t. I was listening and made a bundle in day trading. If I had a little more heads up, I could of hit 20% instead of my incredible 10% in a few hours if I had just been closer to the Oval.
Sorry. Larry, the blink was not part of the plan. And I wonder who did the insider trading.
Larry, Of course you say trump is smart to impose these tariffs (you say that because there is an ‘R’ by his name on the ballot is all). But the simple truth is, that despite all his blabbing, the tariffs will not do what he wants them to do. Bring manufacturing back to the US? In all likelihood no. No manufacturing concern is going to start building a plant when he can’t even decide whether he will impose them or not. Raise a bunch of money? Again, he can’t really decide if they will stay in place (which will raise some money, but mainly it would just raise prices for the lower income people-you do understand inflation?). Nobody can make a decision on their operations, be it the people that manufacture goods, or the people that sell the imported products, because of his inconsistency. His tariffs during trump 1 didn’t work out, recall he had to bail out the farmers because the Chinese hit back, targeting the farm belt-great negotiator he is not. Recall that he pulled us out of the trans-pacific pact, which was aimed to bind together countries against the Chinese… And then there are the tariffs on our two closest neighbors, Canada and Mexico, this is after he renegotiated the Canada/Mexico/US trade agreement during his first try at wrecking the country. Now that agreement is no good, so he is implementing tariffs instead. Trump is a rotten president, he has made it clear that the US cannot be trusted to honor any agreement, even the ones that he negotiated. This is a sad fall for a country that many were saying was the most respected and reliable country on earth. Of course the tariff issue is far from the only thing that he is failing on, you only have to look at his cabinet picks (all of whom you said were great choices with the exception of Gaetz), the only thing they excel at is licking ass. (perhaps you missed the secretary of education-who should have stuck with wrestling-talking about how wonderful it was that they were teaching ‘A1’ in school, not a mere slip of the tongue, but repeated many times. In case you are ignorant of what she was talking about, it should have been ‘AI’). Your senility in backing anything that trump says or does should relegate you to the tennis courts, not writing a blog read by dozens of people….
The tariffs represent the largest tax increase in over 40 years. Can you explain how that is beneficial? Also, there are never any winners in a trade war. the last really serious trade war got started in 1930, by us, how did that work out? I realize you were not alive then, so you probably think what followed didn’t actually happen, but it did, and it’s going to happen here in very short order, again. We do not learn from history, just rinse and repeat. I pity the congressmen/women who will be battling for reelection in 1926.
Frank and Mike covered the main points.
Larry, of what use is backing someone’s economic policy in part when the whole of it is fundamentally flawed to the extent of creating disaster and demolition.
There are few if any Republicans who challenge Trump on his EO generating mill going into areas of government where he has no authority and assuming rights unconstitutional for the president. They find no support amount fellow Republicans for fear of Trump’s infamous bent to seek revenge and retribution on any who oppose him.
On the other hand, few Republican show disagreement with what Trump has done and plans to continue doing.
Although, he ignores court orders, refuses judicial decisions that don’t go his way, bullying through the world markets, and wielding an economic sword in retribution tariffs he calls reciprocal tariffs.
He chants America First to supporters and isolationism to Congress. Is he mixed up and confused because he thinks this the 19th Century We are in the 21st Century and operate in very much more complex of a reality.
Republicans seem willing to allow the nation’s economy great loss for Trump’s tantrums and excessive ordering of EO’s.
Whether you are in lockstep with Trump and his ordering flood because you believe he is intelligent in his officious ignorance. Or, you have become numbed to Trump’s abuse of office and continue in steadfast loyalty to a party you don’t recognize.
Trump’s conspiracy theories have kept him so far. Lies and deception will be found out and embarrass the party. And, Trump will be Trump who will have a convenient fall guy on whom the axe will fall.
Larry, Trump is unscrupulous along with the big twins pugnacious and mendacious. Will you trust someone such as he with responsibility for our nation today and the ramification stupid enacted today will have on this nation’s future.
That you and Trump happen to be the same age should have no bearing on his capacity for his job.
Empathy, possibly, sympathy not a bit. When Trump reaches 82, Republicans will look back saying , what have we done?
You asswipes aren’t good enough to give Trump a rim job. But speaking of Trump, he passed his physical examination including a cognitive test with flying colors. And the only colors you lefties have is shit color. Like the color of dung. As in Frank Dunger. Get a grip boys. It’s going to be alright. Your crowd has tried to stop Trump by lawfare, false dossiers, tried to bankrupt him and of course is still trying to kill him. How is that shit working out?
He said, she said so who are we going to believe.
Larry you cast a very dim light on the Democrats and call them duplicitous hypocrites. As you say that your clean as a whistle at midnight Republicans with Mr. Trump leading the pack have always personified duplicity and published the manual called The Art of the Hypocrite. You’re contradicting yourself on the merits of tariffs and down peddling the coming recession produced by a ballooning recession.
Like typical Republican you justify Trump’s policies that wrecked havoc in just the first quarter and sacrificed a good economy from Biden at the start of 2025. Then, when perception of Trump’s actions at home and worldwide dramatically explode in his face. Classic Trump attempting to minimize fallout has his team put out a press release about the entire fiasco is part of this larger plan.
If his plan is angering all our allies and trade partners, putting at risk of deep recession the US economy and initiating a domino effect across the globe where nation after nation have their economies go into recession.
History warns leaders who plan for today and ignore what lead to economic disasters in the past which were like fires that burn out of control faster than and further than anticipate.
Recovering losses from woodland fires requires decades in time. Experience should be the best teacher, history provides real data for comparison, but memory from past calculations that failed get parsed out of practical use for personal political rationale. Antiquated formulas and over theorizing from egocentric hurried implementation of unlikely solutions to imagined problems which together do not make a successful plan not have any place in a national economic policy.
Larry, Trump seems to have suckered you in as your commentary on this issue puts your opinion in the “terrific” side of the tariff argument. You could ride out the economic tornado Trump is stirring up which will definitely cause huge roller waves in pricing. Larry, those in the top 10% income category will be relatively protected with the financial security buffer 90% of Americans don’t enjoy.
Trump in the 1% earnings class lacks empathy for the greater majority of us who currently sacrifice basic purchases in our budget so that we have a home, heat, electricity, water and basic communication tech. We are not in an economic position needed to sustain the Trump instigated wild higher prices and loss of product availability.
Trump doesn’t know a Kroger store from a Piggly-Wiggly Market, He wouldn’t even recognize that these are grocery super markets.
Trump says through the Press Secretary that his tariffs policy is working because countries are signing up for negotiation sessions. He can’t guarantee he will end up with concessions and countries agreeing to lower tariffs on American made products they import.
Trump’s forced undemocratic taxes paid by those among us who can least afford the cost will not be brief as Trump implies. One does not have to be highly educated in economic and finance for an understanding that prices increased by 10% and more will continue their rise long after some tariffs are reduced as well as at a future date the tariffs will expire entirely. Trump Tariffs, Trump Recession, Trump Depression , and Trump downward inertia pushing this country’s decline in every critical measure. Trump has become the quintessential ugly America. He makes Americans who travel outside our country embarrassed when asked their nationality.
Trump is the worst sales rep for America. As our President he is supposed to be our chief representative and the face of democracy and freedom around the world.
Well that’s not happening. Right about now and not 100 days in the WH. His face is not welcomed in most countries.
That’s a fact unprecedented in American History.
Larry doesn’t seem to care enough about PBP readers who comment and opinions in this space. Although, his critiques of these comments are not at all objective but entirely uncompromising and deeply partisan. Some satisfaction, if just a little, can be drives from knowing that he is alive. No other opinion writer than Horist is as brutal and condescending. How well his readers know his opinion’s’ predictability on the topics and titles he undertakes.
Seth. Intelligent debate tactics from your comments.
Strictly sticking to the pertinent facts argument points raised by Larry is a plus.
Making sensible deductions from the article and responding positively in kind is your forte.
Keep it up. Larry can always use an amen Charley in his choir.