Why tariffs on China are a bad idea

Trump's latest wave of "reciprocal tariffs" are very dangerous for the future viability and prosperity of the United States economy.

A cargo ship docking in a Shanghai trading port.

The president has not only initially raised all tariffs on China by 10%, but also padded the already existing tariff rates from his first term with an over 104% "reciprocal" tariff in response to the so-called "high tariffs" that China has been allegedly implementing on the United States. He has cited concerns that the Chinese have been "ripping us off" economically in the form of stiff competition, cheap labor, and cheap goods outcompeting American-made goods. He believes that this tariff, a part of his "Liberation Day" agenda, will revitalize the American economy which has been the victim of a massive trade imbalance with other nations.

However, these tariffs will be a very terrible idea for the American economy, in fact doing the inverse reaction. Instead of passing the majority of the pain on foreign producers who are allegedly exploiting the American consumer market, instead the cost of these tariffs will be passed down onto the consumers who purchase these products. We import the vast majority of our goods from China, from electronics to food to clothing products, ranging from all sorts of goods. By implementing an over 104% tariff on all goods from China, inflation will steadily rise, meaning that prices would increase. Instead of foreign companies (who could shift their focus to other markets with lower tariffs) paying the 104%+ cost of the tariffs levied by the Trump administration, instead the American consumer buying these products will bear the brunt of the cost. In doing so, the president is acting in the contrary of his promise of helping the economy for all Americans; goods will become more out-of-reach for the average American.

In addition, high tariffs will in fact hurt American businesses, especially smaller businesses that do not have the same fiscal leverage of big companies to adapt to economically turbulent situations. Many small, family-owned businesses rely on cheap foreign products to sustain their business, especially from China, which has been the target of high tariffs. So, not only will consumers pay the price, but also small businesses, those which provide thousands of American jobs.