Courtesy | Unsplash
The cornerstone of President Donald Trump’s economic policy is something he called the “most beautiful word in the dictionary”: tariffs. Since January, Trump has tacked steep tariffs on a veritable smorgasbord of imports from international foes and allies alike.
Tariffs are as American as apple pie, as a quick glance through our nation’s history will reveal. But these taxes on imported goods have been historically low since the end of World War II, thanks to global free trade agreements. This explains why Trump’s decision to resurrect tariffs sparked predictions of domestic stagnation or even a global trade war from economists and commentators.
Even our beloved professors made these forecasts. Almost the entire economics department signed a letter to the editor in the Collegian (“Trump’s Tariffs are Fundamentally Flawed,” April 10, 2025) predicting Trump’s tariff policy would “stifle investment.” For Hillsdale’s economics majors, the level of drama on campus rivaled “Love Island.”
But almost a year later, strong economic growth and an outpouring in domestic investment have thoroughly vindicated Trump’s bold tariff strategy, refuting the president’s doubters.
Economic stagnation is nonexistent. The nation’s Gross Domestic Product — a measurement of total economic activity — is up almost 4%, while the stock market is reaching all-time highs.
Nevertheless, from a purely economic viewpoint, high tariffs are bad. They’re taxes on American businesses — not foreign countries — which raise the prices of consumer goods. But we must consider tariffs politically, too.
High tariffs are not the permanent norm. Trump is using temporarily high tariffs as short-term leverage to secure hundreds of billions of dollars in investment from our allies. For example, once Japan agreed in July to invest $550 billion in the U.S., Trump dropped tariffs on their imports from 25% to a tolerable 15%.
With our consumer-driven economy as the envy of the world, other countries will do almost anything to keep access to American customers. Even rival superpower China realizes their economy would spiral without their number one customer: America, which purchased $500 billion worth of Chinese products in 2023.
Just a few weeks ago, China declared sweeping new export restrictions on rare earth elements, over 90% of which are processed and refined by China. With near complete Chinese control over these critical components of computer chips and magnets, Trump threatened to place 100% tariffs — a virtual trade embargo — on China. Now, China is signaling that it will walk back the restrictions.
Tariffs are more than a simple tax. In the hands of a capable president, they are a weapon, part of a complicated power struggle between proud nations.
Charles Hickey is a sophomore studying the liberal arts.
