Robert Gamer: Author & Activist

It is no surprise that the tariff of 1789 became the second bill signed by President George Washington. Once in office, the new president, Donald Trump, likewise intends to impose a tariff. If one tariff did what was necessary to lift the economy, the other imposition of a tariff has the potential to totally wreck our economy, causing a tsunami on our businesses and consumers alike.

Going back to colonial times, under British rule, America was denied the use of tariffs to protect its industries. The American Revolution could be thought of as a war against this policy. After we had won independence, we were in a pinch as far as our growing businesses due to foreign competition. Realizing this, George Washington signed the Tariff Act. The Civil War also was triggered, in part, by the tariff question. While the North wanted tariffs to protect its rising industries, the agricultural South, which freely shipped its produce, opposed protection. During our growth as a nation, tariffs, championed by the likes of Alexander Hamilton, played an instrumental role.

The world economy we enjoy today bears no resemblance to the economies during our earlier periods. Our industries no longer need protection from foreign competition the way they did in the 18th and 19th centuries. We instead depend upon foreign trade, both importing and exporting our goods. It is this balance, by imposing a universal tariff that, according to a Goldman Sachs survey of over 500 market participants, will pose “the greatest potential risk to the U.S. economy and U.S. markets in 2025.” On the first day of his administration, Trump has promised to place tariffs on Canada and Mexico, our two largest trade partners. Trump has also proposed tariffs on Chinese goods. What effect will these tariffs have? An upward pressure on the number of trade goods. If consumers cry out about the high cost of products now, wait until they see the sticker prices after these tariffs go into effect.

According to the Peterson Institute Institute for International Economics, Trump’s tariffs will cost the U.S. household approximately $2,600 a year. The items that will see price rises include smartphones, laptops, tablets, and video games. As the U.S. imports 80% of its clothing, the price of jeans, T-shirts, sweatshirts and other apparel items could skyrocket.

For millions of Americans on fixed incomes – from retirees to disabled veterans – the tariffs could create a tidal wave of price increases that threatens to drown those who carefully budget every Social Security check or disability payment. A $30 pair of jeans could jump to $36 overnight, and basic electronics like tablets might soon be out of reach, leaving many struggling to keep their heads above water.

George Washington would take one look at what Donald Trump is preparing to do regarding imposing a universal tariff and probably have cardiac arrest. A Trump tariff tsunami is about to strike our economy. Be ready with your life vest!