The Only Thing Worse Than Tariffs Is Non-Tariffs
Well, you’ve gotta hand it to President Donald Trump. Trade policy is the topic du jour, with tariffs and tariff threats grabbing most of the headlines. When Trump announced 25% tariffs on steel and aluminum imports, my neighbor rushed out to replace her refrigerator, fearing rising prices.
The small slice of the population with a “Principles of Economics” textbook on their bookshelf looked up the chapter on tariffs, read a few paragraphs, shut the book, and mumbled, “Yup, tariffs are bad.” The larger slice of the country that gets their economics from cable news either likewise got this version of the story or else another version that explains how tariffs are a key strategy in 4-D chess that can unleash unheard-of prosperity. Which story you get depends on what channel your TV is stuck on.
Step away from the textbooks and TV, and you’ll see that some big-time policymakers are rethinking not just tariffs, but overall trade policy—namely non-tariff trade barriers.