Free Trade

Trump's Tariffs Are Politically Toxic

Voters hate the tariffs—and elected Republicans aren't even trying to defend the president's signature policy anymore.

|

When the White House rolled back tariffs on coffee, fruit, beef, and farm equipment, it was effectively an admission that the tariffs were raising prices—and that Americans, not foreigners, had been paying for them.

Now, in the closing stages of the midterm campaign, the White House is once again rolling back some of those import taxes—and once again making an awkward implicit admission.

President Donald Trump's tariffs have become politically toxic.

The administration announced late last week that it would lift the 50 percent tariffs on some Canadian imports, apparently in an attempt to help Sen. Susan Collins (R–Maine) survive a tough reelection campaign in which the tariffs have played a significant role.

If this is indeed an attempt to sway voters in Maine, it is not a very convincing one. The Trump administration is removing tariffs on some agricultural and mechanical goods, as well as packaging and plywood, The Wall Street Journal reports. But Trump is also imposing new 50 percent tariffs on "other Canadian goods, including carpet, certain valves, and waste products."

Collins issued a statement thanking the White House for the changes. This is what members of the U.S. Senate have been reduced to—begging the president to cast his capricious, tariff-happy eyes toward products that will hurt people in other states more than in your own. (In fairness to Collons, she has voted repeatedly to roll back Trump's tariffs, but not enough of her fellow Republicans went along with it.)

Still, it's worth asking: What exactly is the pitch to voters here? Here's a tariff cut, now vote for Republicans so the president can continue to arbitrarily tax imports whenever the mood strikes?

It's easy to see why Trump's tariffs have become so unpopular. They are a huge and broad tax increase—the Tax Foundation estimates that 54 percent of imports are subject to Trump's tariffs, which are costing the average household about $1,000 annually—that was imposed without congressional authorization or popular support. They create more losers than winners, as downstream businesses and consumers pay the price for the protectionism offered to American manufacturers. Even the supposed "winners" of the tariff policy tend also to be "losers," since so much manufacturing depends on importing raw materials and intermediate goods.

Perhaps more surprising is how unwilling Republicans are to defend the president's signature economic policy. Or to even talk about it.

The Wall Street Journal's Greg Ip crunched the numbers and found that House GOP candidates have not run a single ad talking about the tariffs during this election cycle.

That silence speaks volumes. Trump says "tariff" is "the most beautiful word in the dictionary." But it is now "one of the most hated words in politics," writes Ip.

The only Republicans to mention trade or tariffs in a campaign ad, as far as I've seen, is former Rep. Mike Rogers, who is now running for the Senate seat in Michigan (and thus was not included in Ip's analysis). And he's calling for an end to the "tariff war."

There is a lesson here that hopefully will linger beyond the next week: If you support a policy that deliberately and unlawfully raises taxes and prices, voters will not reward you for it.

It's a lesson that the Republican Party learned long ago, but apparently forgot.

Against economists' advice, a Republican-led government in 1930 implemented a huge tariff hike intended to protect American farms and factories at the start of the Great Depression. Instead, those tariffs worsened economic conditions and triggered foreign retaliation.

When voters went to the polls in 1930, the first midterm after the Smoot-Hawley tariffs were passed, they registered their displeasure. The GOP lost 52 seats in the House that year. Two years later, an even larger landslide would sweep Democrats into power in Congress and the White House, ushering in the New Deal era that reshaped the federal government forever. The two lawmakers who lent their names to the legislation were among those who lost their seats, fittingly.

The most notable difference this time around is that Congress didn't actually pass a tariff bill. The trade barriers were instead imposed directly by the executive. Voters don't seem to care. Republicans were too cowardly to stand up to Trump's unilateral power grab, and now they seem too ashamed to try to defend that policy (and their largely complicit response) on the campaign trail.

As they say, those who don't learn from history are doomed to repeat it. And "doomed" may be a fitting way to describe the Republican majority in Congress right now, thanks in no small part to Trump's tariffs.