Dwain Northey (Gen X)

Tariffs have long been sold to the public as a clever economic weapon — a way to “punish” foreign producers, fix trade imbalances, and protect domestic industries. Politicians love them because they sound tough and patriotic. “We’ll make China pay!” is a much easier slogan than “We’ll slightly increase import taxes that consumers will quietly absorb.” The reality, however, is far less cinematic. Tariffs, despite their political marketing, are not paid by foreign governments or companies — they are paid by us, the consumers, through higher prices on imported goods and anything made with imported parts.

Here’s how it really works. When the U.S. government imposes a tariff — let’s say 25% on imported steel — that tax is collected at the border by U.S. Customs from the importer, not from the foreign exporter. That importer then adds the tariff cost to the price they charge manufacturers or retailers, who in turn pass it on to consumers. By the time it reaches you, the cost of that steel shows up in the price of your car, washing machine, or even canned food. So when a politician says another country is paying, what they actually mean is you are paying on their behalf.

Now, tariffs can serve a legitimate economic purpose — when used properly. In theory, they’re a tool to protect developing or strategically important domestic industries from unfair competition, particularly when foreign producers benefit from heavy government subsidies or exploitative labor practices. By temporarily raising the price of imports, tariffs can give local industries room to grow, modernize, and compete. This approach, however, requires surgical precision — targeted, time-limited tariffs designed to encourage competitiveness, not complacency.

In practice, however, tariffs are often wielded like a sledgehammer rather than a scalpel. Instead of fostering industrial growth, they become political theater — a way for leaders to posture as defenders of national pride while ignoring the downstream costs. Broad, long-term tariffs distort markets, raise consumer prices, and provoke retaliatory tariffs from other countries that hurt U.S. exporters — especially farmers and manufacturers. The 2018–2019 trade war with China was a prime example: while the rhetoric was about punishing China for unfair trade practices, the economic pain landed squarely on American businesses and consumers, who paid billions in higher costs.

A well-designed tariff policy would be transparent, temporary, and strategic — paired with investments in domestic production, workforce development, and innovation. But when tariffs are used as a political cudgel, the result is inflation, inefficiency, and global resentment.

The painful irony is that while tariffs are often sold as acts of economic nationalism, their cost is borne by the very citizens they claim to protect. A tariff is, at its core, a tax — a hidden tax that appears on grocery shelves, in car lots, and in hardware stores. It doesn’t punish importers; it punishes consumers.

And yet, Donald the self-proclaimed “Great Deal Maker” still doesn’t seem to understand this. In his magical world of “Art of the Deal” economics, he imagines China, Mexico, and Canada dutifully writing checks to the U.S. Treasury every time he slaps on a tariff — as if the world’s trading partners are just paying him tribute for his genius. His red-hat faithful nod along, convinced that foreign nations are depositing billions straight into Uncle Sam’s piggy bank, all while their grocery bills, car prices, and construction costs quietly soar.

In reality, the only people writing checks are American consumers. The only “deal” being made is the one where we pay more for less — and smile while doing it. Tariffs, when abused, aren’t a symbol of strength. They’re a very expensive illusion sold to a very gullible audience.

Welcome to Trumpanomics: the art of making Americans pay for foreign taxes — and calling it victory.