Tariffs Are Taxes—and They Put Americans Last

Originally posted at Iowans for Tax Relief.

When I talk to folks across the country—from shop owners to factory workers—they all want the same thing: more opportunity, not more obstacles. That’s why it pains me to see tariffs making a comeback. While they’re pitched as protecting American jobs, tariffs are taxes that hurt American families, workers, and businesses.
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President Trump’s decision to pause tariffs for 90 days on most countries is welcome. But a 10% tariff still applies broadly to all imports—five times higher than what we had before April 2. Steel tariffs remain. And let’s be clear: these costs don’t fall on foreign governments—they fall on us.

About half of U.S. imports are intermediate goods—raw materials, components, and machinery that American businesses rely on to make things here at home. When tariffs drive up the cost of these inputs, those higher costs ripple down the supply chain—showing up as higher prices at the store, fewer jobs created, slower wage growth, and lower returns on investment.

We’re already seeing the drag on growth. The Atlanta Fed’s GDPNow model projects the U.S. economy contracted at a -2.4% annual rate in Q1 2025. Inflation is still lingering. For families just trying to get by, this is not the time to raise taxes—especially hidden ones that show up in the cost of groceries and gas.

The real mistake here is one of economic logic: if trade weren’t mutually beneficial, people wouldn’t do it. Whether across town or across borders, voluntary exchange happens because both sides see value in it. That’s not exploitation—it’s cooperation. Trade allows people to specialize, be more productive, and focus on what they do best. And that leads to more abundance, not less.

So why wouldn’t we want more access to affordable goods and competitive inputs? When Americans get to choose how to spend, invest, and produce, they grow wealth. When government picks winners and losers through tariffs, it distorts choices, limits competition, and reduces prosperity. That’s not putting America first—it’s putting politics ahead of people.

Some worry that international trade has hollowed out our manufacturing base. But that misunderstands the real drivers of change. U.S. manufacturing output is near record highs—it’s employment that’s declined due to automation and gains in productivity. The solution isn’t to punish consumers with higher prices. It’s to fix tax, regulatory, and spending policies that hold back investment and innovation.

The proposed Nippon Steel–U.S. Steel deal, though controversial, highlights what’s at stake. Japan is a trusted ally, and this $14 billion investment would keep jobs in the U.S. and strengthen our industrial base. Blocking such investment sends a chilling message to our friends and allies who help fuel American prosperity.
We need better tools than tariffs to isolate bad actors like China. One option? Re-enter and renegotiate the Trans-Pacific Partnership. It would boost U.S. exports, strengthen strategic alliances, and empower producers here at home.

Trade isn’t just about economics—it’s about freedom. Letting people decide how to create and exchange value is core to a free society. Tariffs restrict that freedom. And that’s something conservatives should never support. There are better ways. Let’s pursue them.