Taxpayer Watchdog Condemns Tariff Pledge

For Immediate Release

Contact: Kara Zupkus (224) 456-0257

WASHINGTON, D.C. – On Inauguration Day, President Donald Trump stated his intention to impose 25 percent tariffs on Mexico and Canada, starting on February 1. Previously, President Trump has suggested significant across-the-board tariff increases and particularly high prices for Chinese goods.

In response, TPA President David Williams provided the following comment:

“President Trump’s tariff policies are antithetical to the notion of putting America first. Abundant evidence shows that tariffs impose great economic harms on American businesses and consumers, because tariffs are taxes. Making matters worse, when used as leverage, they usually fail to achieve their stated ends. The tariffs levied in President Trump’s first term were no different, lowering GDP and employment in the economy generally, dampening productivity in the manufacturing sector, and on net costing tens of thousands of manufacturing jobs.

“A bizarre by product of Trump’s tariffs is his pledge to create the External Revenue Service to collect the tariffs. Not only is creating another agency counterproductive, it just doesn’t make any sense.

“At this point, there is no excuse for ignoring the clear evidence. Imposing tariffs were work against must of the rest of the Trump agenda. Raising prices on Americans with tariffs will mute the prosperity-unleashing effects of policies like energy abundance, permitting reform, and general deregulation. Insisting on doing so would be an unforced error, a self-inflicted wound.

“TPA urges President Trump to reverse course.”