Donald Trump is urging the government to impose a 60 % tax on products made in China and a 20 % tariff on imports from other countries as part of his” Make America Great Again” plan.
His rationale seems easy: tariffs will increase American jobs, lower the federal deficit, reduce food prices and yet generate revenues to subsidize childcare.  , But the former mayor’s supposed all-purpose business repair is inherently flawed.
Trump’s proposed tariffs aim to increase factory work in the US by increasing the cost of international items and encouraging domestic production, one of Trump’s main promises.
In principle, this sounds attractive, but the reality is much more difficult. However, history shows that tariffs often lead to long-term career development in professional sectors.  ,
In fact, many US firms that relied on imported material elements were forced to raise rates or hire employees as a result of Trump’s taxes after the US government imposed them in 2018.  ,
The taxes led to short-term problems, but they did n’t result in a lasting boost in manufacturing jobs.
Rather, businesses frequently automated tasks to reduce costs or relocate to lower-wage nations without the same tariff regulations.
Fast forward to the current, and Trump’s proposed 60 % tariffs on Chinese-made products will not prevent American firms from seeking cheaper options abroad.  ,
Many US companies would just change their purchasing to nations like Vietnam, India, or Mexico to prevent paying the innovative 60 % taxes because global supply chains are more efficient than ever.
Chinese manufacturers can avoid tariffs by working with companies in other countries and labeling their goods as” Made in Vietnam” or” Made in Mexico” despite Trump’s claim that it is his main adversary in his trade dispute.
So, tariffs on China wo n’t bring back jobs to the US; instead, they’ll probably just move them abroad.
The false promise that tariffs will decrease US food prices is another major weakness in Trump’s price plan.  , Ultimately, tariffs are a tax on exports and the problem of those fees almost generally falls back on customers.  ,
When taxes are imposed on goods that Americans frequently consume—such as technology, clothing, or food ingredients—the costs of these items will increase.  ,
For example, if agrarian tools, fertilizers, and presentation materials are subject to tariffs, the cost of producing meals will ultimately increase.  ,
When faced with higher input costs, American farmers are likely to pass those costs on to distributors and grocers, which will increase the cost of food.
Ironically, this will have the opposite effect as Trump claims: tariffs can be expected to increase food inflation, which is a particularly contentious political issue on the campaign trail.
Moreover, tariffs on a wide range of imports, especially from China, will affect countless industries—from technology and automotive to construction and consumer goods.
American companies, many of which rely on imported parts, will face increased costs, making US goods more expensive domestically and less competitive internationally.
This could cause businesses to increase prices, reduce investment, and even slash jobs. American consumers will ultimately bear the brunt of Trump’s proposed tariffs’ higher costs.
More broadly, Trump’s tariff plan risks destabilizing global trade networks. If tariffs cause higher prices and slower economic growth in the US, consumers will spend less, businesses will invest less, and overall economic activity will decline.
Additionally, the retaliatory tariffs that will likely come from nations affected by Trump’s tariffs could further stifle global growth and set the stage for a devastating, far-reaching trade war.
On a diplomatic level, Trump’s tariffs would exacerbate tensions with key allies and trading partners.  , Countries affected by the tariffs, not just China but also allies like Canada, Mexico, Japan and EU nations, are likely to respond by imposing their own new duties on American goods.  ,
This would hurt US exporters, particularly in industries like agriculture, manufacturing and technology.  ,
No country actually wins by distorting free trade, as trade wars are a zero-sum game. Instead, history demonstrates that they cause persistent economic suffering and diplomatic strife.
A breakdown in US trade relations with its key trading partners could also threaten America’s reputation abroad. Countries targeted by US tariffs may turn toward other global powers, not least China, to form new alliances, weakening America’s global influence and power.
A US-led switch to high-wall protectionism in favor of multilateral trade agreements would ultimately lead to a more disorganized and less prosperous global economy and not have the opposite effect on China that Trump’s tariffs are meant to impose.