Trump's Tariffs Spell Disaster for the Everyday American

Trump's way of naming things has always been, suffice to say, unusual. Whether it be his constant references to Joe Biden as Sleepy Joe, or more controversially, the COVID-19 Virus as the "China Virus," Trump tends to shy away from traditional names. But his recent naming of his tariff policies, "Liberation Day," isn't just unusual. It's misleading, and at the expense of the American working class.

On Thursday, after many extensions of the tariff date for numerous promised deals that never came, Trump's tariffs finally took effect. Writing this at 1 AM, just under an hour ago at a minute past midnight, tariffs between 10% and 41% were applied to nearly 70 countries. It's hard to say what the effect of these tariffs will be. But it's certain that whether it be EVs or everyday electronics, the price of living in America will get even more expensive. At a time where job growth is declining(even if Trump denies it,) any increase in prices for consumers is sure to have a dramatic effect.

Trump's economic policies and their impact on market volatility and consumer costs.

This won't be the first time Trump's tariff policies have taken effect. In his last term, albeit though tariffs were smaller, the Tax Foundation found that "US tariffs [were] almost entirely borne by US firms and consumers." Rather than bringing the economic growth the administration promised, the policies instead estimated a net loss to the US economy of $16 billion annually, including more than $114 billion in losses to firms and consumers. While in his speeches, Trump may misunderstand his own policies and claim "other nations will pay" the idea that foreign nations bear the brunt of these levies is a myth that has been debunked time and again, as most of the cost of tariffs are seen by consumers, when companies are forced to raise prices as a result of buying goods at a higher cost.

Indeed, rather than "raise money for the country," the Tax Foundation estimated that this round of tariffs would reduce market income by 1.4 percent in 2026 and amount to an average tax increase per US household of $1,453 in 2026, making the tariffs the largest tax hike since 1993. As a result of the price increases that companies will be forced to make as a result of these dramatic tariffs, low-income households will be hit the hardest. At the grocery store, gas pump, and in restaurants, Americans are paying for unpopular tariffs they didn't ask for.

It's hard to find the rationale behind this policy so frowned upon by economists. One moment, Trump claims that it is about "correcting" deficits, a normal part of any developed economy. Other times, it's about "the art of the deal." The next, it's about prioritizing American manufacturing.

While these claims have been unsubstantiated, what there has been a consensus on is that if you make companies pay more for a good, they charge consumers more money. The Council for Foreign Relations estimates that consumers may see a near 2% increase. At a time where we are finally starting to bring the economy back to normal after the disruption that came with the pandemic, this would be disastrous.

The goal of tariffs doesn't seem to be having good economics in mind. It's for political goals. Trump's term has been notorious for neglecting checks and balances, and the round of tariffs are another way for him to offer his classic "us vs them" narrative without using Congress. Trump's political strategy has been contingent on an illusion of action in a world where statistics are not priorities to much of the nation.

But he won't be able to continue to advocate for illusory policy forever. If Trump's tariffs were truly a heaven-sent saviour for American manufacturing, the first wave of Trump's tariffs would not have seen a net economic loss of 245,000 jobs as according to Oxford. After the hundreds of billions in trade retaliation, the manufacturing sector lost more jobs than it gained. Industries using steel shed jobs quicker than steelmakers who were being "protected," but had no one left to sell to. While it may seem obvious, when the cost of materials goes up, companies are forced to cut jobs, go out of business, or move production abroad, the opposite of the rhetoric you will see Trump talk about at a rally.

These tariffs are not liberating the middle class. They are isolating them from a better future, where the cost of living isn't something the average worker is highly considered with. The more we move down a trajectory of rejecting our allies, the more the same allies will reject our trade partnerships, and move towards China.

Tariffs may make for good slogans. But they have been shown to make bad policies. Americans should not mistake the name "Liberation Day" for economic freedom, and learn from the Smoot-Hawley Tariff of 1930, which caused the Great Depression. Whether it be Trump's first term, or tariffs 100 years ago, tariffs have not had a good track record for the American worker.