A year ago on today, the president pulled out a chart in the now paved-over Rose Garden and set the global economy on fire. He announced his so-called “Liberation Day” tariffs, which then changed a bunch of times before being deemed illegal by the Supreme Court earlier this year.
The tariffs were mostly paid by us — consumers and small businesses.
Justine Kahn is the founder and CEO of Botnia, a skincare company based in California. She’s been dealing with pricier essential oils from France, packaging from Spain, herbs from Tibet.
“And so what used to cost, you know, if we placed a $10,000 order, now costs us $15,000, and so that has really impacted our business,” she said.
When I ask economists about the broader economic impact, “it’s thankfully not been an utter disaster,” said the Competitive Enterprise Institute’s Ryan Young with a bit of a sigh. “Because the enacted tariff rates were roughly half of what the president threatened at the Rose Garden press conference, but it’s still been pretty bad.”
Pretty bad in terms of higher prices for businesses and consumers across many sectors, bruised relations with our allies, and very few, if any, of the economic benefits the Trump administration promised.
But one industry has gotten a boost, according to Scott Lincicome at the Cato Institute. “The offer of exemptions and the prospect of new tariff protection has led to a dramatic rise in lobbying on trade in Washington,” he said.
A sixfold increase, per Lincicome — as just about every industry affected by tariffs looks for a way to get out of paying them.
Related Topics