March 7th, 2025

More news, more tariffs.

But what is a tariff?

I feel as though many people are talking about how they hate the tariffs that the Trump administration is imposing on our neighbors to the north and the south, but how many of those people have a true understanding of (a) what a tariff is and (b) why Trump is imposing them.

A tariff is a tax imposed by a government on goods and services imported from other countries. They are used by governments all the time for a number of reasons, including raising revenue, protecting from offshore competition, and (most importantly) as leverage in trade negotiations.

Governments have frequently utilized tariffs. In 2018, the U.S. enacted tariffs on imported steel and aluminum to boost domestic steel production. Many nations impose tariffs on textiles and clothing to safeguard their local industries from the influx of cheaper imports. For instance, developing countries may levy tariffs to help protect local jobs and support homegrown textile industries, even though these actions can sometimes lead to higher retail prices.

The idea that the tariff alone will help stimulate the American economy is flawed; many other factors play into that.

But, I think, as do most people with a remedial understanding of economics (such as myself), that boosting the “local” economy is a good thing. Right?

I’m all for free trade and selling your goods and services worldwide, but as Americans, wouldn’t you rather have most of your goods and services from America, not some factory in Southeast Asia?

The same thing goes for the food we eat. Shouldn’t all the food that Americans eat be produced, grown, and butchered in America?

There needs to be a focused movement on producing and purchasing American-made products. A country that cannot make its own goods and always has to outsource its services not only does a disservice to its citizens but also weakens itself. If a country is unable to produce goods during peacetime, then it certainly won’t be able to during wartime.

Not that I am rooting for a war, but often it’s not up to us, therefore we shouldn’t leave it to chance and make our own damn stuff.