As a retired business person, I have not been a fan of tariffs unless used on a targeted temporary basis. They usually punish the wrong people and have an echo effect. Looking for a good summary of my concerns, I found this AI search summary. It is a little long, but not too bad.
“ Do tariffs work in the US?
The effectiveness of tariffs in the US is a complex and highly debated topic. There’s no single, universally agreed-upon answer, and their impact is felt differently across various sectors of the economy and among different groups of people.
Here’s a breakdown of the arguments and observed effects:
Arguments for tariffs
Protecting Domestic Industries: Tariffs aim to make imported goods more expensive, thereby making domestically produced goods more competitive and protecting local industries from foreign competition.
Discouraging Unfair Trade Practices:Tariffs can be used to counter perceived unfair trade practices by other countries, such as subsidizing exports or dumping goods at unfairly low prices.
National Security Concerns: Tariffs may be imposed to protect industries deemed critical for national security, such as certain manufacturing sectors or those involved in the production of vital goods.
Generating Revenue: Historically, tariffs were a significant source of government revenue in the US, according to Douglas Irwin, a Dartmouth College economist. However, this role has diminished with the introduction of other taxes like the federal income tax.
Bargaining Chip in Trade Negotiations:Tariffs can be used as a tool to pressure other countries into making concessions in trade negotiations.
Observed effects and arguments against tariffs
Higher Consumer Prices: Tariffs increase the cost of imported goods, and these costs are often passed on to consumers in the form of higher prices for everyday goods, according to the George W. Bush Presidential Center. This effect can be particularly regressive, disproportionately affecting lower-income households.
Disruption of Supply Chains: Tariffs can disrupt global supply chains, making it harder for businesses that rely on imported components and raw materials to operate efficiently. This can lead to delays, increased costs, and challenges in maintaining competitiveness.
Reduced Competitiveness: Higher input costs due to tariffs can make US manufactured goods more expensive and less competitive in global markets.
Retaliation from Trading Partners: Tariffs often provoke retaliatory measures from other countries, potentially escalating into trade wars that harm global economic growth.
Negative Impact on Exports: Retaliatory tariffs can significantly reduce demand for US exports, affecting sectors like agriculture and potentially leading to job losses.
Uncertainty and Reduced Investment:The uncertainty surrounding tariff policies can discourage businesses from investing and hiring, potentially leading to slower job growth and higher unemployment.
Limited Impact on Overall Economy and Trade Balance: While tariffs can provide some targeted benefits, like increasing employment in protected sectors, studies suggest they often result in a net loss to the US economy. Many economists also argue that tariffs do not effectively alter the overall trade balance, as this is primarily influenced by broader macroeconomic factors like national savings and investment, according to the Cato Institute.
Negative Effects on Productivity and Innovation: Some research suggests that tariffs can weaken incentives for domestic firms to innovate and improve productivity, potentially leading to long-term stagnation in protected industries.
Potential for Political Dysfunction: Tariffs can create an environment ripe for lobbying and requests for exemptions, raising concerns about potential abuse and crony capitalism.
In conclusion
While tariffs can offer some benefits in specific areas, such as protecting certain domestic industries or generating revenue, economists generally agree that their overall impact on the US economy is more often negative, resulting in higher prices for consumers, disruptions to supply chains, and potential trade conflicts. ”
I found this very informational. The next few months will be telling.
musingsofanoldfart 
Note to Readers: I received this email rebuttal response (in part) to the above that I thought was reasonable and worth repeating :
”Very interesting. Another ‘pro and con’ debate. Would be interesting to hear from
a pro tariff argument with equal reply/representation.
Most feel tariffs in the long run are not good, but required in an attempt to maintain a ‘level playing field’. But how to do this, with so many variables between countries…eg…different average standards of living, salary variances, tax differences, raw materials availability, monetary value differences, etc. A tough call overall.”
Nowhere in this AI generated content is there any reference to “ enables a petulant predatory man-child to randomly punish people and countries he doesn’t like ( for incoherent reasons).
That is likely true. It is hard for AI to synthesize the vindictiveness of the incumbent president. Here is an assessment made of current issues from mining the research:
”Recent tariffs imposed by the US have led to increased prices for consumers and have sparked retaliatory tariffs from other countries. The effectiveness of these tariffs in achieving their stated goals, such as protecting domestic industries or reducing trade deficits, is still being debated and is likely to vary depending on the specific industry and the overall economic context. According to The Budget Lab at Yale, the tariffs imposed in 2025 could have a negative impact on overall GDP, while also leading to shifts in output across different sectors of the economy. ”
“Generating revenue” surely this revenue of which Trump boasts is coming out of American pockets?
Other than a possible loss of markets, what adverse impact do tariffs have on foreign countries?
Jon, that is a pretty big impact. They do find other sales paths, but also hit back with tariffs that impact their own consumers. So, consumers and suppliers bear the brunt. Keith
Note to Readers II: Per The Guardian:
“General Motors announced on Tuesday that Donald Trump’s tariffs knocked $1.1bn off its operating income in its last quarter.
The US automaker’s second-quarter core profit fell 32% to $3bn and said it expected the tariff impact to worsen in the third quarter. The company stuck to a previous estimate that trade headwinds threaten to hit the bottom line by $4bn to $5bn. GM said it could take steps to mitigate at least 30% of that impact.”
Note to Readers III: A MAGA fan in the Piedmont Triad area told me twice that a CEO must put America first over the shareholder interests. Here is my second retort to his follow-up:
My Response: “Per the SEC, a CEO is beholden to the shareholders not America. You should ask why all those companies, including folks in the Piedmont Triad like Burlington, Hanes, Pillowtex, etc. offshored jobs to China, then Vietnam, then Bangladesh, et al back in the 1980s and 90s. It was to make money for its shareholders not America. Why did Trump offshore production of his wares? There is a long time fact of life, business leaders will chase cheap labor. Take that to the bank. “