The hidden
tax. Tariffs cause a hidden tax that never really goes away. I hope that
Americans are tired of being told fairy tales about why everything costs more.
Our elected officials point fingers. Corporations blame supply chains.
Commentators blame inflation. The truth is much simpler and infuriating:
tariffs are a tax on ordinary people, and the pain does not stop when the
policy ends. It sticks. It lingers. It rarely delivers what we were promised. This
is the mess we are in now because of the tariffs imposed by the current administration.
Tariffs are
sold as strength, as toughness – a way to punish governments and to bring back
manufacturing jobs. That pitch works on conservatives who want control,
moderates who want fairness, progressives who want domestic industry, and
politicians trying to get elected. It is a message built to unite. The policy
itself does the opposite. It drains the wallets of the very people that it
claims to protect. Here is how it actually works. The minute a tariff hits,
companies raise prices. Not after debate. Not after study. Immediately.
Families feel it right away in every aisle, in every store. Workers feel it
again when businesses, squeezed by higher costs, freeze hiring or cut hours.
Tariffs don’t hit China. They hit the checkout line.
When tariffs
disappear? Prices don’t magically fall. They don’t even drift down. They stay
right where the companies left them. Economists call this “price stickiness,”
but most Americans call it what it is: once prices go up, they never come back
down to where they were before. Why? Because tariffs don’t just raise prices-
they scramble supply chains. Companies switch suppliers, reroute shipping,
build new compliance systems, and bake those costs into their business. Those
costs don’t vanish when the tariff does. Even when courts strike tariffs down,
companies sit around waiting to see if they get a refund. No one lowers prices
while they are waiting for a government check that may never come. Inflation
only makes it worse. Higher wages, higher shipping, higher energy prices,
higher interest rates – all of it stacks on top of the tariff shock. Tariffs
were one spark in a much bigger fire, and removing the spark doesn’t put out
the blaze.
Let's stop
pretending the story ends with “cost pressures.” There’s another force at work
that everyone recognizes, no matter their politics: profit-seeking. Call it
greed, call it business – the label doesn’t matter. What matters is the
behavior. When a tariff raises prices, companies pass the cost on to consumers.
When tariffs disappear, companies keep the higher prices because they can. If
competitors aren’t lowering prices, why should they? The market rewards holding
the line.
This leads
to an even bigger truth: tariffs rarely bring back manufacturing because it is
far cheaper to pass the cost on to consumers than to build manufacturing plants
in the United States. Building facilities takes years. Training workers takes
years. Creating a domestic supply chain takes decades. Passing the costs of the
tariffs to the consumer takes an afternoon. Even with tariffs, producing
overseas is often cheaper than producing here. Also, because tariffs can be
imposed or removed instantly, companies don’t trust them enough to make
long-term investments that would have to occur to bring back manufacturing.
Here is the
part that needs to be said plainly: many of the public claims made about tariffs
were not true. Not spin. Not exaggerated. Not political framing. They were
factually incorrect. In other words, they were lying to you. Those inaccuracies
that some people would call lies shaped public understanding of a policy that directly
raised prices for millions of Americans. Here are some examples: “China will
pay the tariffs.” Americans paid the tariffs through higher prices, not
China. “Tariffs will bring back manufacturing”. They haven’t. Companies mostly
shifted production to low-cost countries. “We’re getting billions from
China.” The money came from U.S. importers, not China. “Tariffs don’t
raise prices for Americans.” They did, across appliances, electronics,
clothing, and construction materials. “Farmers are doing Great.” They
weren’t. Retaliatory tariffs hit them so hard that a multi-billion-dollar
bailout was required.
Tariffs
didn’t just hit consumers. They hit farmers like a hammer. Hard. Fast. And in
ways that everyone paying attention could see coming. Farmers were not just
collateral damage; they were the first and biggest target of the retaliation. When
the U.S. slapped tariffs on imports, other countries hit back, were it hurt:
American agriculture. Here is what it meant in real life: “Farmers lost
their biggest customers overnight.” China, the largest buyer of U.S.
soybeans, stopped buying. Not slowed. Stopped. “Prices for farm goods
crashed”. Soybeans, pork, dairy, and
corn all took hits. Farmers don’t set prices; global markets do. “A massive bailout
had to be created.” Tens of billions in emergency funds weren’t a bonus.
They were a life raft. “Even with the bailouts, many farms still closed.” Once
foreign buyers switch suppliers, they don’t switch back. “Tariffs raised the
cost of farming itself.” Steel, fertilizer,
machinery, all got more expensive. Farmers get squeezed from both sides:
lower prices for what they sell and higher prices for what they buy. The bottom line is simple: Tariffs hit
farmers harder than almost everyone else. They lost markets, lost income, lost
stability, and in many cases lost their farms. This is not partisan. It’s what
happened.
Tariffs are
not just a function of economic policy; they are also a political symbol. A way
to signal toughness in a world where economic complexity doesn’t fit neatly
into some rally speech. Tariffs have been presented to the American people as
proof of strength, sovereignty, and national pride. They were presented to the
American people as a simple solution to a very complex problem, and that
presentation mattered more than the economics behind it. Tariffs became a
symbol because they told a story people wanted to believe: that America was
being taken advantage of, that other countries were winning, and that a single
decisive action could flip the script. The narrative was emotional, but the
economics behind it were shaky at best. Tariffs were visible. Unlike tax
credits or regulatory change, tariffs could be announced with a signature and a
headline. They created the appearance of action, immediate, forceful, and
unilateral. They fit neatly into a flawed worldview that sees global trade as a
zero-sum contest, where toughness alone can reshape supply chains. But symbols
don’t pay the grocery bill. Symbols don’t lower the cost of appliances or cars.
Symbols don’t rebuild factories. And symbols don’t protect families from the
higher prices that tariffs impose. The symbol's value overshadowed the economic
reality, and the American people are left holding the bill.
If we want a
serious conversation about trade instead of symbols to get votes, we have to
start with the truth Americans live with every day: tariffs hit immediately,
the benefits rarely materialize, and the gap between the story and the reality
is paid for at the checkout counter. Until policymakers confront that gap honestly
and stop lying to the people, the distance between the political promises and
the economic outcomes will only grow wider. I would think that our current
Administration would know all of this. Are they or are they not business
experts? The lies have to stop, and we, the voters, have to start demanding the
truth.
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