COMMENTARY: The president should tread lightly on tariffs

The voters made clear their views on what Team Biden has done to the U.S. economy last November. To wit, they had made a mess of things. Jobs that vanished during the pandemic lockdowns didn’t come back at the speed people hoped. Higher prices brought about by the inflation created by the now-former administration’s major legislative initiatives played havoc with family budgets. Hope was in the toilet.

Things are better now. Inflation is down, and prices generally aren’t rising faster than working people can keep up with. At places such as the supermarket and the gas station, however, the lingering effects of Bidenflation are still taking a big bite out of our paychecks, keeping the cost of everyday necessities much higher than they might otherwise be.

America voted for change in November, and they’re getting it. Policies that will lead to reduced prices and keep the economy moving forward are pouring out of the White House at record speed. Better times are just around the bend.

There’s only one wrinkle. The president has imposed tariffs that might produce pressure that drives retail prices up just as we’re turning the corner on the inflation fight. According to some economists, the imposition of hefty tariffs on everything from soup to nuts could cost U.S. consumers between $46 billion and $78 billion in spending power each year.

Tariffs may have their time and place. Influential people in economics and business argue convincingly that tariffs help protect critical domestic industries from unfair foreign competition. That’s different from the blanket, indiscriminate tariffs some are talking about imposing on a limitless range of consumer goods that are probably inflationary and eat away at take-home pay.

Every credible research project related to imposing and raising tariffs on our trading partners concludes the same thing: American families will end up paying higher prices for discretionary and nondiscretionary products and services alike.

A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. That makes it easy to raise, which in turn makes it a dangerous source of new revenue. It may not look like it, but it’s a tax that is ultimately paid out of what’s in the consumers’ pockets as prices rise.

Trade is an economic security issue. It is forever and always a two-way proposition. Countries seeking to benefit from trade with the United States should open their markets to U.S. goods and services indiscriminately. They will retaliate against higher tariffs imposed by us with tariffs of their own on American-made products, imperiling thousands of jobs across the U.S. and unfairly burdening small and medium-sized businesses.

We all understand that international trade and security issues are rife with challenges that require serious policy responses. The new administration should be innovative in its search for solutions to the challenges global trade presents. Still, it must ensure that increased tariffs are a last resort rather than the sole recourse when America’s trading partners act unfairly.

Peter Roff is former U.S. News and World Report contributing editor and UPI senior political writer. Contact him at RoffColumns@gmail.com and follow him on X @TheRoffDraft.