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Wednesday, February 12, 2025

DENNIS PATRICK: TRUMP’S TRIUMPHANT TARIFFS

Move fast and break things. This seems to be the modus operandi of President Donald Trump on several fronts. Nothing wrong here. Makes sense – like General George S. Patton’s charge across Europe or General Tommy Frank’s 100-hour dash to Baghdad during Iraqi Freedom.

President Trump’s second term does not reflect business as usual. At home, he is tearing up the deep state and woke bureaucracy. Using the leftist’s own jargon, federal departments and agencies are being “reimagined” -- or abolished. Abroad, allies and adversaries are experiencing a new US economic alignment through tariffs.

Trump focuses on tariffs for a variety of reasons. 1) Tariffs provide revenue for the US Treasury. 2) Tariffs ensure the US can enter into international trade agreements fair to the US. These agreements preclude the US being taken advantage of. 3) Tariffs provide leverage in the process for making deals. 4) Tariffs induce other nations to cooperate on moral issues such as controlling drug and sex trafficking.

On February 1, 2025, Trump made good on his promise to implement tariffs on Mexico, Canada, and China. They were to take effect on February 4. “The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA)," a White House press release stated. "Until the crisis is alleviated, President Donald J. Trump is implementing a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China…Canada has played a central role in these challenges, including by failing to devote sufficient attention and resources or meaningfully coordinate with United States law enforcement partners to effectively stem the tide of illicit drugs."

Tariffs impose a tax on imported goods from America’s competitors thus generating a consistent stream of revenue directly into federal coffers. Before the establishment of the federal income tax in 1913, tariffs were the primary source of government funding in the United States. Trump seeks to renew this revenue stream and alleviate the pressure of taxes on American workers’ income.

While critics argue that tariffs lead to higher prices, choice becomes a factor. Consumers will not pay the higher prices passed along by the foreign competitors if they choose to buy American instead. Also, the “higher price” argument overlooks the strategic intent behind tariffs. The goal is not to provoke trade wars but to provide negotiating leverage from a position of strength. Trump’s tariffs are not ends in themselves but a means to secure better deals.

Leaders of Canada and Mexico are indignant because Trump imposed 25 percent tariffs on their exports into the US. In this dispute, most of the world will side with Canada and Mexico, and Trump will be viewed as mean, erratic and even racist. For years, the US has talked about massive numbers of fentanyl deaths, yet there has been little or no relief. Trump is taking the only action that is likely to alleviate the problem in a significant way.

By imposing tariffs on billions of dollars’ worth of Chinese goods, Trump pressured Beijing into a trade deal securing commitments that directly benefits American farmers, manufacturers, and workers. This was a calculated move rooted in Trump’s understanding of leverage.

Beyond their fiscal benefits, tariffs shape economic behavior. By making imported goods more expensive, tariffs create a competitive advantage for domestically produced products. This price shift incentivizes consumers to "buy American," directly supporting local manufacturers, small businesses, and American workers.

History shows that when the U.S. takes a firm stand on trade, it often leads to more favorable agreements. The mere threat of tariffs has, in numerous cases, compelled foreign partners to offer concessions that benefit American interests.

Furthermore, tariffs serve as tools of moral and strategic diplomacy. By imposing tariffs on goods from nations with poor labor practices, environmental standards, or human rights records, the U.S. can promote ethical practices globally while protecting American industries from unfair competition. Trump’s policies reflect the clear vision that American prosperity comes first.

The case for tariffs is clear. They are not relics of a bygone era but powerful instruments for modern economic strategy. Under President Trump’s leadership, tariffs become more than economic policy. They firmly establish a cornerstone of America’s negotiation arsenal. They generate revenue, drive industrial growth, reinforce national sovereignty, and, most importantly, secure deals that put America first.

By prioritizing American-made products and reducing reliance on foreign goods, tariffs will help forge a stronger, more self-reliant, and prosperous United States. This is not just an economic imperative; it is a patriotic one, championed by President Donald Trump, the ultimate dealmaker.

Tariffs need not be imposed with mean spiritedness and the mindset of a bully. In the end, tariffs merely provide negotiating leverage. A deal can be reached worthwhile to all parties. Everybody has something to gain. Everybody wins. In the immortal words of that justice champion Rodney King, “Ca-ca-can’t we just get along?”

 

Dennis M. Patrick can be contacted at (JavaScript must be enabled to view this email address)

Click here to email your elected representatives.

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