In trade wars, consumers have been known to launch their own brand of attacks.
One way they do so is by choosing not to purchase goods and services from the country enacting higher tariffs.
Citizens of foreign countries can thumb their noses at American goods and services.
As an example, increased tariffs on Canadian products may have the butterfly effect of Canadians not buying American products and services.
This writer has spent a significant part of his career in business and politics and have witnessed the far-reaching effects of policy decisions.
It's important to address not only the direct outcomes but also the less obvious, more subtle impacts these policies have on our society and our global relationships.
Instead of tariffs, we must make it beneficial for companies to come back home.
Reduce their regulatory costs.
Specifically, give them a 10-year tax break for moving operations back home.
We must make it better and easier for them to be here than to be there.
It’s not just important to encourage Americans to buy American; it’s important to encourage foreign markets to buy American as well.
When the U.S. increases tariffs on foreign goods, the costs of those goods rise, which negatively impacts the American consumer.
It’s a tax paid by American citizens, often disproportionately affecting working-class families who rely on affordable imports to make ends meet.
Businesses reliant on imported materials face higher production costs, which may result in higher prices for their goods.
This can then disrupt supply chains (we saw significant disruptions in 2021), affecting everyone from manufacturers to retailers.
Throw in a disenchanted customer base to the mix, and the potential to make things even worse increases.
The global economy is more interconnected than we might like to admit.
Isolated strategies like tariffs won’t lead to a stronger economy, but rather create volatility and uncertainty, which affects the very people policymakers are trying to protect.
That’s not to say the U.S. shouldn’t use tariffs to level the playing field; it should. However, using those tariffs for punitive purposes can and will lead to counteroffensives.
The unintended rise in patriotism elsewhere that accompanies these trade measures is a reality. Take the prepper mindset and extrapolate it.
As anxiety, uncertainty, and volatility rises, so does protectionism and the pursuit of self-interests. When those interests are perceived to be aligned with national ones, patriotism and isolationism can take root globally.
When tariffs are imposed to "protect" American industries, the result is sometimes a renewed sense of national pride across the border and internationally.
The idea of buying American, of strengthening domestic industries, appeals to many working-class voters who feel sidelined by globalization.
They see tariffs as a way of standing up for American interests, of reclaiming jobs and industries lost to overseas competition.\
And . . . they're right to feel this way.
However, perhaps no one has put it so simply as boxer Mike Tyson, who said, "Everybody has a plan until they get punched in the mouth."
That said, there’s another dynamic at work here.
In the generic sense, globalists don’t like patriotism, regardless of what spawns it.
That's a good thing, but babies and bathwater metaphors also come to mind.
A growing divide between nationalism and globalism is one of the unseen consequences of a tariff-heavy strategy. It’s clear that tariffs, in the eyes of some, may serve as a symbol of rising populism and patriotism — something that runs counter to the interests of those who see national sovereignty and self-sufficiency as outdated notions.
Patriotism should never be outdated.
As trade tariffs lead to a rise in nationalism, we can see the slow erosion of the status quo, where international organizations, multinational corporations, and policymakers have long acted with little regard for the will of the people. While globalism promised greater prosperity and cooperation, many Americans — especially in the rust belt — have felt left behind. Tariffs will not fix everything.
In some instances, they will do more harm than good if not implimented properly.
They are seen by many Americans, however, as pushback against a system that has been failing them.
The push for stronger borders, more protectionist policies, and a refocusing on American interests may be seen as a threat to a globalist system. Perhaps they should be. We should also be strategic about how we achieve those things.
We need better trade agreements, fairer terms, and stronger industries at home that can compete globally. Americans are not rejecting the idea of global trade; they are rejecting a system that has left them at a disadvantage, while multinational corporations and foreign countries have thrived at their expense.
We must be circumspect and consider the real, unintended consequences of relying on tariffs as a primary tool for economic policy.
While tariffs might seem like an immediate solution to trade imbalances, their true impact is more complex.
A tool, yes.
A weapon, no.
The future of our economic strategy should aim to balance national interests with global cooperation — finding ways to protect American workers while still engaging with the broader world in a fair and meaningful way.
Jim Renacci was raised in a blue-collar union family, pursuing the American dream, leading to his operating over 60 businesses, creating 1,500 new jobs, and employing over 3,000 people. As a four-term conservative U.S. congressman, Jim served on the powerful U.S. House Ways and Means and Budget Committees, cutting government spending.
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