‘Our trade policy rests firmly on the foundation of free and open markets,” said President Ronald Reagan in 1986. Thirty years later President Donald Trump tweeted, “The word TARIFF is a beautiful word indeed.” His administration imposed—to cheers from parts of the GOP—tariffs of as much as 50% on steel, aluminum, and an array of Chinese goods. After being the party of free trade for almost four decades, some Republicans need a refresher course on the dangers of protectionism.
Republicans undoubtedly consider the Tax Cuts and Jobs Act to be the crowning achievement of the Trump era. Yet many who heralded its pro-growth tax relief for working families now support tax increases on these same families in the form of tariffs. Numerous studies have shown that almost all the costs of tariffs initiated under the Trump administration were paid by American consumers and businesses. To take one example, the median price of a washing machine increased by $86 within months after President Trump imposed tariffs on them. According to the American Action Forum, Mr. Trump’s tariffs combined have increased consumer costs by approximately $51 billion a year.
