Tariffs Are Valuable Tools

 

Tariffs serve as nuanced instruments employed by governments to influence economic outcomes. Rather than functioning as blunt tools for broad revenue generation, tariffs are more effective when used to make targeted economic adjustments. Relying on tariffs to revive a manufacturing-based industrial economy reflects an outdated perspective. The United States' future growth depends on forward-looking strategies rather than attempts to replicate the Industrial Revolution of the nineteenth century.

China knows this. China entered the market economy in the late 1970s and took over 40 years to become a manufacturing powerhouse. During that period, they destroyed many low-wage manufacturing sectors in America and severely impacted towns that depended on them economically. Trying to bring those times back as vocalized by the current administration, is like putting your car shifter on “R” thinking it means Race.

In a guest essay opinion piece on July 14, 2025, in the NY Times, economic professors David Autor and Gordon Hanson wrote, “We Warned About the First China Shock. The Next One Will Be Worse.” In their essay they described the areas where China is challenging America in industries where we have long been the undisputed leader: “aviation, A.I., telecommunications, microprocessors, robotics, nuclear and fusion power, quantum computing, biotech and pharma, solar, batteries. Owning these sectors yields dividends: economic spoils from high profits and high-wage jobs; geopolitical heft from shaping the technological frontier; and military prowess from controlling the battlefield.”

They warn of our fall from true market leadership in the areas listed above as we retreat into our own “isolationist MAGAsphere.” While Chinese businesses are coordinating with multinational corporations elsewhere, we seem to be bent on pounding them with tariffs so we can once again proudly manufacture sneakers in America. What clever economist decided that should be our goal. Oh yes, it wasn’t an economist, it was a real estate developer turned game show host, who now wants to be a dictator, but only for a day.

We should be looking toward companies like Nvidia, founded in 1993, and which just became the world’s first $4T company. They did this by being responsible for the architecture and design of chips largely used in computers as GPUs (graphic processing unit) and various specialty chips used in AI data centers. They outsource much of their manufacturing to TSMC in Taiwan, but have partnerships with Amkor and SPIL in Arizona for some production, testing, and packaging.

American tariffs and isolation are not a solution; they recall an era of income inequality and low wages. China’s actions affect both the U.S. and its allies, so forming strategic partnerships is more beneficial than harming potential collaborators. America should prioritize investments in education, venture funding, and research and development, as proven effective during WWII through initiatives like the Office of Scientific R&D.

Our vision should be toward the future. Tariffs, when skillfully applied, can protect specific industries and correct trade imbalances. Tariffs should be used more like a jeweler’s screwdriver and not a sledgehammer. They should not be an across-the-board revenue source. We should be looking to create and expand jobs in new fields with good salaries and benefits, not to become a dominant force in sneaker manufacturing.