Google searches for the word “tariffs” skyrocketed as Donald Trump declared victory in the 2024 presidential election. In his first presidential term, Trump employed tariffs against China in general, but also ordered tariffs on specific goods from all countries, including solar panels, washing machines, steel, and aluminum. And in his 2024 campaign, he promised 10% tariffs across the board on all imported goods – and 60% for goods made in China.
Trump seems to view tariffs as a financial band-aid for everything from closed U.S factories to China’s rising global power, and from minimizing the risk of developing new technologies to the cost of increased border security – and as a way to discourage countries and companies from utilizing currencies other than the U.S. dollar.
The author bends over backwards to be even-handed and still can’t make an argument that across-the-board tariffs are good economic policy. She basically just switches to, “I guess they can be politically advantageous over taxes that are more obvious? Maybe? But there’s no real economic upside.”
Tariffs serve a purpose when your goal is to incentivize local production or materials and goods. Make foreign goods more expensive so that local ones are more attractive.
The common saying is that when all you have is a hammer, everything looks like a nail. In this case, all he has is a screwdriver but he thinks it’s a hammer, and he’s looking for nails.