Trump’s Tariffs Are Designed to Backfire
Instead of leading to reduced trade barriers, the new global tariff plan is all but guaranteed to raise them.
According to President Donald Trump, April 2, 2025—the day he unveiled his executive order implementing global tariffs—will be remembered as a turning point in American history. He might be right. Unfortunately, April 2 is more likely to be remembered as a fiasco—alongside October 24, 1929 (the stock-market crash that kicked off the Great Depression), and September 15, 2008 (the collapse of Lehman Brothers)—than as the beginning of a new era of American prosperity.
The stated rationale behind Trump’s new “reciprocal tariffs” has a more coherent internal logic than Trump’s previous tariff maneuvers. (Stated, as we will see, is the key word.) The idea is that other countries have unfairly advantaged their own industries at the expense of America’s, both through tariffs and through methods such as currency manipulation and subsidies to domestic firms. To solve the problem, the U.S. will now tax imports from nearly every country on the planet, supposedly in proportion to the barriers that those countries place on American goods.
