(MENAFN – The Conversation) Donald Trump is a big fan of tariffs, believing they boost American manufacturing. He promises to impose tariffs of up to 20% on imports and even 200% on cars from Mexico if he gets re-elected.
During his first term (2017-2021), he claimed tariffs would fix trade issues with China and create US jobs, but our research suggests otherwise.
Instead of helping, tariffs increased US reliance on foreign suppliers, drove up costs for consumers, and led to retaliatory tariffs from other countries. For instance, China tripled tariffs on American cars, and the EU raised tariffs on various US exports.
Moreover, US manufacturers often reduced their global reach and became dependent on a few foreign companies instead of reducing imports. Efforts to “reshore” manufacturing (bring it back to the US) are challenging without a proper ecosystem of suppliers and skilled labor.
Rebuilding US manufacturing takes time and infrastructure, and many jobs might not return due to increased automation. Tariffs alone, without internal support, have led to more dependence on foreign resources.
While some politicians, including Biden, continue to support tariffs against China, former Vice President Mike Pence argues against them, saying they merely raise prices for consumers.
If Trump returns to office, tariffs will likely be a priority, but historical evidence suggests they won’t benefit the US economy as intended.
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