Brent & Argus

Why Tariffs Matter

Contents

For decades, Americans have been told that free trade is a moral imperative, a necessary component of prosperity, and an unalloyed good.

But what if that story is an unmitigated scam?

What if, rather than lifting all boats, free trade has been carefully designed to enrich the few at the expense of the many? What if globalization has been less about economic efficiency and more about economic warfare against the American worker?

Tucker sat down with former U.S. Trade Representative Bob Lighthizer for a fascinating talk about tariff policy.

We’ll break down why reinstituting tariffs might not just be a good idea, but a necessary step in reclaiming economic sovereignty, restoring the dignity of work, and, possibly, saving the Republic.

I’m instituting a new sub-section going forward where I get AI input/counterpoints below each section. Simply put, I feed the AI the section and ask it to give me either context or a counterpoint. Enjoy.

The Free Trade Fairytale

The theory of free trade is simple: You do what you’re best at, I do what I’m best at, and we all prosper.

But in practice, that’s not how it’s played out.

Instead of a fair exchange, we’ve ended up with a system where the United States has hemorrhaged wealth to foreign nations that manipulate their markets, exploit their workers, and subsidize their industries. As a result, America has gone from the world’s leading manufacturer to a nation addicted to cheap imports.

The numbers are staggering.

Our trade deficits are measured in the hundreds of billions annually. In terms of international investment, we’ve gone from owning more abroad than foreigners own in America to being in the hole for a cool $23.5 trillion.

Foreign entities now own a massive chunk of American real estate, businesses, and debt. This is not just an economic issue. It’s an issue of sovereignty.

Argus’s Thoughts

Free trade has lifted millions out of poverty worldwide and has provided American consumers with cheaper goods. Isn’t that worth something? Also, trade deficits aren’t necessarily bad—some economists argue they reflect strong consumer demand rather than economic decline.

Brent’s Response

I find it unlikely we can directly attribute causation in what has lifted millions out of poverty over the past few decades. No one is saying all trade deficits are bad, but the specifics of the scenario are necessarily important.

The Slow Death of the American Middle Class

If you want to see the real impact of this grand economic experiment, just take a drive through Middle America.

Once-thriving manufacturing towns have been hollowed out.

The working-class of the country have seen their jobs shipped overseas, their wages stagnate, and their communities crumble.

As economists Anne Case and Angus Deaton noted in their research on “deaths of despair,” life expectancy for working-class Americans is declining due to alcoholism, drug abuse, and suicide.

It’s doesn’t seem like an accident that this trend accelerated right as globalization kicked into high gear.

Meanwhile, income inequality has skyrocketed, with the top 1% now holding more wealth than the middle 60% combined.

AI Counterpoint

Globalization isn’t the sole culprit—automation has also displaced workers. And while income inequality has worsened, global trade has reduced poverty in developing nations, which some argue is a net positive.

Brent’s Response

Globalization isn’t the sole culprit. But the story of automation would be quite different if we were still manufacturing things at home. Yes, there’d be displacement, but we’d gain high-skill positions too. I’m still not buying the causation between globalization and reduced poverty. Even if I did, there’s a separate question of what the primary concern of American politicians setting trade policy should be?

Why Tariffs Make Sense

Historically, America became an economic powerhouse through a mix of tariffs and strategic industrial policy. From Alexander Hamilton to Abraham Lincoln to Ronald Reagan, great leaders have understood that protecting domestic industry isn’t just good policy, it’s key to national security.

Tariffs work because they neutralize the advantages of countries that use unfair practices like currency manipulation, labor exploitation, and government subsidies.

They make American-made products competitive again, encouraging companies to bring jobs back home. And they ensure that wealth generated by American consumers stays in America rather than enriching our geopolitical rivals.

AI Counterpoint

Won’t tariffs just raise prices for consumers? Also, history shows that tariffs can lead to trade wars, which often hurt the very industries they’re meant to protect.

Brent’s Response

Tariffs can raise prices, especially over the long-term. But there’s also a deeper moral question here. Aren’t we just outsourcing social and economic negative externalities? Is it worth it to get a tv for $1,000 less because it’s assembled by child slaves in a country with no respect for human freedom and little environmental regulation?

The China Problem

It would be one thing if our economic woes were merely the result of bad policy. But the situation is worse than that. China, in particular, has played the game of globalization masterfully. They’ve used state-backed economic warfare to dominate key industries while siphoning off American wealth and intellectual property.

China doesn’t believe in free trade. They believe in winning.

China imposes tariffs while benefiting from America’s Pollyanna free trade policies. The CCP subsidizes industries to undercut American competitors. They steal technology at an unprecedented scale. And they use all the wealth they extract from the U.S. to fund military expansion, cyberwarfare, and geopolitical aggression.

AI Counterpoint

It’s true that China engages in unfair trade practices, but tariffs alone won’t solve the problem. The U.S. also needs to invest in infrastructure, R&D, and workforce development to compete effectively.

Brent’s Response

Agreed, tariffs alone don’t solve the problem. But this is another area where context is key. We’re talking about the first and second largest economies ever to exist. We must start somewhere.

Tariffs As Economic Justice

At its core, this debate isn’t just about money, it’s about justice.

It’s about whether a nation should prioritize the well-being of its own citizens over the interests of global elites. It’s about whether we believe in an economy that serves people, or people who serve the economy.

Economic policy isn’t just a numbers game. It’s a moral issue.

Pope Leo XIII, in his landmark encyclical Rerum Novarum, wrote about the dignity of labor and the dangers of unrestrained capitalism. He warned against systems that enrich the few at the expense of the many, wisdom that applies just as much to 21st-century globalization as it did to the Industrial Revolution.

Reinstituting tariffs isn’t isolationism. It’s a method to ensure greater fairness. The fruits of American labor should benefit American workers. And if that upsets a few billionaires and foreign investors? Well, they’ll manage.

AI Counterpoint

While tariffs can help in certain cases, a broader economic strategy—including targeted investments, workforce training, and selective trade agreements—may be a more effective way to rebuild the middle class.

Brent’s Response

I don’t disagree. Tariffs are one piece to the puzzle. But context is everything. This has been going on too long, and there is a lot of resistance to any change. We must be willing to take drastic steps, try new things, and take some risks if we are to succeed in restoring American economic hegemony.

Final Thoughts

At the end of the day, economic policy is a choice. We can continue down the road of endless trade deficits, wealth transfer to foreign nations, and the erosion of our middle class. Or we can choose a system that rewards work, restores economic independence, and puts America first.

Tariffs aren’t a silver bullet, but they are a necessary step in reclaiming our economic destiny. And if the Wall Street Journal editorial board doesn’t like it? Well, they can always buy their next subscription in yuan.

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