Tariffs’ Long-Term Benefits Are Worth Short-Term Costs

President Donald Trump was reelected on a promise to rebuild domestic industry, defend American producers and workers, and rebalance U.S. trade. To achieve these objectives, the president and policymakers in Congress should pursue a robust trade agenda that expands the use of tariffs.

After decades of high-quality jobs and manufacturing moving overseas, Americans recognize that today’s trade regime does not deliver the widely shared benefits that its advocates promise. A survey published by American Compass last year found that 47 percent of Americans feel the nation has “suffered” from globalization compared with only 33 percent feeling it has benefited. The respondents also agreed that “we need a stronger manufacturing sector” by a margin of ten to one.

For most of the 20th century, the United States was the world’s dominant manufacturer and innovator. But starting in the mid-1970s, the U.S. began to run a trade deficit. This deficit accelerated after the formation of the World Trade Organization (WTO) in 1994, rising from a recent low of $28.6 billion in 1991 to $377 billion in 2001. After China was admitted to the WTO that year, the U.S. trade deficit continued to skyrocket, reaching 918.4 billion in 2024. This represents 78 percent of trade deficits worldwide.