TARIFFic Part 1

A tariff is a tax imposed by a government on imported goods, designed to protect local industries from foreign competition. This tool not only encourages citizens to purchase locally produced goods by increasing the cost of imports but also fosters a form of quiet patriotism and self-reflection among consumers.

Example of a Tariff in Action

Here’s a simple way to understand how tariffs work:

• Suppose a country imports cars from another nation.
• If the government imposes a 25% tariff on these cars, an additional 25% is added to the price of each imported car.
• For example, if a car costs $20,000 from another country, the tariff would add $5,000 to the cost, making it $25,000. The consumer pays this extra cost when purchasing the car, which makes locally made cars comparatively cheaper and encourages purchases of vehicles produced within the country.

This is exactly what President Trump is implementing from this week. As of February 1, 2025, he signed an order imposing a 25% tariff on imports from Canada and Mexico, and a 10% tariff on Chinese goods. These measures are aimed at protecting U.S. manufacturing and addressing issues like drug trafficking and illegal immigration.

Engineering Quiet Patriotism

The introduction of tariffs, particularly on foreign cars, has an unintended but profound effect on national pride in countries that impose them. In my experience living in a country with high import taxes on foreign vehicles, I’ve seen how this policy instills a subtle yet powerful sense of patriotism. By shielding local manufacturers from foreign competition, the tariffs encourage pride in supporting production within the country.

When people purchase locally produced goods, they’re not only supporting homegrown manufacturing but also helping sustain national employment. This creates a more socially cohesive environment, fostering pride within the community. Additionally, tariffs help consolidate the marketplace, making it easier for consumers to make more intentional decisions—whether that’s purchasing products in-season, supporting local brands over foreign ones, or opting for products that reflect national values. Conversely, when consumers purchase products from abroad, they may be unaware of the unethical manufacturing practices or even war-torn regions where these products are made. Buying locally allows consumers to make informed choices, supporting businesses they know and taking a more active role in how their consumption impacts the world.

Trump likely doesn't realize that these tariffs do more than protect jobs—they help the environment by reducing the transportation of foreign goods, which lowers fossil fuel emissions. Imports often require transportation by air or sea, both of which contribute significantly to climate change. By incentivizing local production, we reduce reliance on global supply chains and long-distance shipping, which has a more direct impact on the environment than some left-wing environmental policies, which sometimes overlook the real-world implications of global trade.

I’ve witnessed this phenomenon firsthand in Japan, South Korea, Malaysia, and briefly Singapore. In these countries, the sense of national pride tied to supporting homegrown goods is palpable, fostering social cohesion. People understand that their purchasing choices impact not just the economy but also society. These tariffs are not only economic decisions but also central to the fabric of these countries’ social identities.

Creating Societal Divisions

However, this approach creates divisions. Those who can afford foreign-made cars, due to the tariffs, tend to be wealthier, while those driving locally produced vehicles are seen as supporting the national economy. Wealthier individuals are more likely to drive imported vehicles, which, due to the tariff, now cost as much as lower-end supercars in Western countries. Rather than breed frustration over these higher costs, this dynamic subtly encourages people to reconsider their consumer choices and the value of what they purchase.

Continue to Part 2