The False Promise of Tariffs
How Economic Nationalism Hurts American Workers
In his second term, Donald Trump is once again promising to revive American industry through aggressive tariffs and economic nationalism. He claims that higher taxes on imports will bring manufacturing back to U.S. soil, creating a new golden age of prosperity for American workers.
But we’ve seen this movie before—and it doesn’t end the way he says it will.
Tariffs aren’t a new idea. Trump’s first term already tested this approach, and the results were clear: rather than reviving American manufacturing, tariffs raised costs for U.S. businesses, triggered retaliatory trade wars, and ultimately hurt the very workers they were supposed to help.
Tariffs That Hurt the Heartland
One of the most striking examples came from Missouri. In 2018, Trump’s 25% tariff on imported steel was supposed to boost U.S. steel production. Instead, it nearly destroyed Mid Continent Nail Corporation, the largest nail manufacturer in the United States.
The company’s costs skyrocketed, forcing them to raise prices—leading customers to flee to cheaper, foreign alternatives. Within weeks, Mid Continent’s sales plunged by 50%. The company laid off over 100 workers and warned it might shut down entirely.
This was not an isolated case. Across the manufacturing sector, companies dependent on imported materials faced a cruel choice: eat the cost and risk going under, or raise prices and lose business. Neither outcome was good for workers.
According to the Peterson Institute for International Economics, the steel and aluminum tariffs may have saved 8,700 jobs in those industries—but they cost around 75,000 jobs elsewhere in the economy.
Farmers Became Collateral Damage
Meanwhile, American farmers—many of them loyal Trump supporters—were caught in the crossfire of retaliatory tariffs. China, Europe, and other trading partners responded by slapping tariffs on U.S. agricultural exports like soybeans, pork, and dairy. Exports collapsed. Entire harvests were left unsold.
To stop rural anger from boiling over, the Trump administration authorized over $28 billion in emergency aid to farmers—essentially using taxpayer dollars to pay farmers for losses caused by the trade war.
In the end, the tariffs didn’t just fail to bring back lost jobs—they increased government spending, raised prices for consumers, and destabilized key sectors of the economy.
Why Economic Nationalism Backfires
Tariffs are sold as a way to “protect” American workers, but in a global economy, they often do the opposite:
Higher input costs make U.S. manufacturing less competitive, not more.
Retaliatory tariffs close off foreign markets for American exports.
Uncertainty discourages businesses from investing in long-term growth.
Manufacturing is already evolving. Automation, global supply chains, and shifting consumer demand mean that simply slapping tariffs on foreign goods cannot turn back the clock to a 1950s-style industrial economy.
Instead of a resurgence, tariffs often lead to layoffs, factory closures, and bailouts.
A Future of Isolation and Decline
If Trump’s second term repeats these mistakes—on an even larger scale, with blanket tariffs of 10% or higher—the outcome will be worse. Businesses may accelerate offshoring to avoid tariffs. Inflation will rise. Jobs will be lost, not gained.
And once again, the communities that place their trust in promises of economic revival will be left behind—betrayed not by foreign competition, but by bad policies that misunderstand how today’s economy really works.
The reality is clear: true support for American workers requires investment, innovation, and partnership—not isolation and tariff walls.
Up Next
The harm from economic nationalism doesn’t end with lost jobs.
Next, we’ll explore how anti-immigrant crackdowns are creating labor shortages and hurting key industries.