In the comics, the supervillain Bizarro is the opposite of Superman in every way — and in the bizarro world of President Trump, tariffs are a magic bullet to revitalize the economy, lower consumer prices and protect American jobs.
But the real-world economic reality is the opposite: Tariffs raise costs for American families and hurt more workers than they help.
Rather than tamp down inflation or boost growth, the broad tariffs Trump plans to impose this week are likely to upend our economy in damaging ways.
Tariffs are taxes imposed on imported goods, and despite Trump’s repeated claims, Americans — not foreigners — generally pay them. Studies consistently show that tariffs lead to higher prices for consumers.
Trump’s proposed 25% tariffs on imported automobiles, for instance, could add thousands to the cost of a new car, affecting both imports and domestically produced vehicles that use imported parts.
When imported goods become pricier due to tariffs, American producers typically raise their prices, meaning tariffs push up consumer costs across the board.
Trump initially claimed that tariffs wouldn’t raise prices. When it became obvious that prices would rise and the stock market tanked, administration officials began to argue that higher prices are necessary and even beneficial.
Yet higher prices on everyday goods — from clothing and appliances to groceries — harm working families, shrinking their purchasing power and standard of living. Trade’s downward pressure on prices saves American households thousands of dollars annually.
The consequences extend beyond higher consumer prices: American companies depend heavily on imported materials and parts.
Roughly half of US imports are items used by domestic manufacturers, meaning tariffs directly raise production costs for American businesses — and reduce their competitiveness.
Trump’s first-term steel tariffs, for example, increased costs for automakers and appliance manufacturers, which employ millions more workers than the US steel industry itself. One analysis estimated those tariffs cost American consumers $900,000 for every steel job saved.
Long-term, tariffs do not lead to strong industries. Companies shielded from competition by tariffs often become complacent, failing to innovate or improve efficiency.
They instead spend profits hiring lobbyists to secure continued protection. American industries like steel, shipbuilding and textiles — protected by tariffs for decades — remained uncompetitive precisely because tariffs discouraged innovation.
Tariffs can also trigger damaging international retaliation, endangering jobs in export-driven sectors. Trump’s tariffs in 2018 led other nations to strike back by imposing tariffs on American exports.
American agriculture, which relies heavily on overseas markets, was hit especially hard. US soybean farmers lost billions when China retaliated against Trump’s tariffs, requiring taxpayer-funded bailouts.
Trump sees the US trade deficit as proof of American economic decline. Yet economists overwhelmingly agree trade deficits are neither inherently bad nor indicative of economic weakness, but reflect larger economic factors like investment flows and savings rates.
Historically, periods of strong US economic growth have coincided with rising, not falling, trade deficits. Only in bizarro world are other countries “ripping us off.”
Trump’s tariffs have also fueled the kind of Washington “swamp” activity he’s promised to eliminate. Tariffs create lucrative opportunities for lobbyists, lawyers and politically connected businesses to seek exemptions or special favors.
In Trump’s first term, thousands of businesses spent millions lobbying for tariff exemptions. Companies connected to the administration were significantly more successful at escaping tariffs than those without political influence.
Rather than draining the swamp, tariffs turn Washington into a feeding frenzy for special interests, enriching lobbyists at consumers’ expense.
And while politically favored firms benefit from tariffs, most Americans — including small businesses, families and workers in unprotected sectors — face higher costs and fewer opportunities.
Advanced economies typically keep tariffs low precisely because open trade fosters innovation, efficiency and growth. Heavy reliance on tariffs is a hallmark of poor economic policy, embraced primarily by countries with weak economies and corrupt political systems.
America thrives on competition and innovation, not protectionism. Open markets — the Superman in this story — deliver affordable goods, encourage innovation and expand economic opportunities.
Rather than making America richer, tariffs will inevitably make us poorer.
Trump is promising an avalanche of tariffs on Wednesday, which he’s calling “Liberation Day” — an appropriately bizarre choice of words, given it would accomplish the opposite.
An actual day of liberation would see Congress reassert its Article I, Section 8 constitutional responsibility to set tariff policy.
Time for Republicans to find their capes and stand up as heroes for America’s economic good.
Tad DeHaven is a policy analyst on federal and state economic and fiscal policy issues for the Cato Institute.
This story originally appeared on NYPost
