With collapsing stock markets, retirement portfolios, and consumer confidence, there is an all-too-human tendency to focus on the economic effects of tariffs by their critics: they are a tax on consumption, they will raise inflation, reduce efficiency, and reduce take-home income, etc. This is familiar.
But this mistakes the full significance of a tariff-centric public policy. First and foremost, tariffs are an exercise in political agency. In Trump’s administration they are an assertion of political control by the executive branch. And, in fact, political decisionism is (see here; here; and here) a core commitment of the so-called ‘unitary executive theory,’ which I prefer to call (with a nod (here) to Benjamin Constant) ‘Bonapartism.’ According to Bonapartism the will of the American people generates a presidential mandate to take charge. If you were to have a certain conspiratorial sensibility this is a control over ‘Globalists’ or the ‘Woke;’ a certain progressive-democratic sensibility this is the exercise of control over ‘the economy.’ For Bonapartists it’s control over the ‘deep state,’ which turn out to be code for ordinary ‘civil servants and scientists with at-will employment, sanctity of contracts be damned.’
From my own, more (skeptical) liberal perspective tariffs are an expression of mistrust against individuals’ judgments; they limit and even deny us our ability to shape our lives with our meaningful associates as we see fit. And tariffs do so, in part, by changing the pattern of costs on us, and, in part, by altering the political landscape in favor of the well-connected few. Of course, in practice, tariffs are always hugely regressive by raising costs on consumer products. This is, in fact, a familiar effect of mercantilism and has been a rallying cry for liberals since Adam Smith and the Corn league. Tariffs are also regressive as tax instruments displacing the income tax.