Trump’s Tariff Plan Would Be a Disaster

Donald Trump, the former President, has proposed a 60 percent tariff on Chinese goods as part of his reelection campaign. It may sound like a show of strength, but it risks plunging the U.S. economy into deep trouble. Instead of protecting American jobs and reducing dependence on China, tariffs often backfire by driving up prices, harming industries, and impeding long-term economic goals.

One common misconception is that tariffs are a tax paid by foreign countries. In reality, the costs are paid by the importers and passed on to consumers. When the Trump Administration imposed tariffs of up to 25 percent on most Chinese imports, the U.S. International Trade Commission found that prices for everyday goods—including electronics and furniture—rose by as much as 25 percent.

In addition, American-made goods that rely on Chinese components also saw price hikes, making them less competitive both in the United States and abroad. This undermines U.S. manufacturing, which has not reaped the promised benefits from these protectionist measures.