Donald Trump’s protectionist policies will worsen the struggles of American consumers who will be forced to “bear the brunt” of the former president’s tariff plans, according to Rand Paul.
Paul, the libertarian Kentucky senator who ran in the 2016 Republican presidential primaries, said Trump’s proposals would, in practice, “hurt the workers they purport to help.” In his Wednesday op-ed for The Wall Street Journal, he warned that these policies could reverse the peace-promoting effects of free trade, and unite America’s foreign adversaries.
When contacted for a response to Paul’s comments, the Trump campaign sent Newsweek a selection of statements from the candidate’s surrogates expressing confidence in his tariff proposals.
One of these, from Trump campaign senior adviser Brian Hughes, read: “Trump policies will fuel growth, drive down inflation, inspire American manufacturing, all while protecting the working men and women of our nation from lopsided policies tilted in favor of other countries.”
Senator Rand Paul on December 12, 2023, in Washington, D.C. In a Wednesday op-ed for The Wall Street Journal, Paul warned that Trump’s tariff plans could worsen the effects of inflation for the American consumer.
Kevin Dietsch/Getty Images
Why Does Trump Want To Impose Tariffs?
Trump has made tariffs a keystone of his economic agenda, promising to levy hefty duties on imported goods in a professed effort to punish countries for unfair trade practices and improve the competitiveness of American industry.
“Donald Trump recognized long before he became president that we cannot have free and open trade if some countries exploit the system at the expense of others,” the former president’s website states.
Trump is calling for an across-the-board tariff on all foreign goods ranging from 10 percent to 20 percent, a 60 percent or higher tariff on those imported from China. The Republican nominee has even threatened to slap a 200 percent tariff on John Deere if the manufacturer follows through on plans to shift some of its jobs to Mexico.
How Do Tariffs Affect the Economy?
Economists have criticized Trump’s understanding of tariffs and said that his plans would steepen U.S. inflation, as foreign manufacturers pass the resulting increase in their costs onto American consumers.
Paul said that these cost increases will be exploited by businesses in the U.S., writing: “When we place a tariff on a foreign product, we artificially inflate its price and allow domestic producers to raise their own.”
“By slapping a tariff on the Chinese widget, raising its price to $2, American manufacturers have the freedom to raise theirs as high as $1.99,” he continued. “The consumer is left with no real choice but to pay more.”
Tariffs and Inflation
Tariffs, and their potential impact on inflation, are at the forefront of voters’ minds in the final phase of the presidential election.
According to the latest reading by the Bureau of Labor Statistics, the Consumer Price Index rose by a higher-than-expected 0.2 percent in September. While the year-on-year increase cooled to 2.4 percent from 2.5 in August, Americans still pay around 20 percent more for goods and services than they were some four years ago.
An October 19-22 Economist/YouGov poll found that inflation ranked as the top issue for American adults. 25 percent of respondents listed it as the most important, well ahead of immigration (13 percent), jobs (11 percent), health care (10 percent) and abortion (7 percent).
A mid-October poll by the Associated Press and the University of Chicago found that Trump is more trusted than Harris on both tariffs and inflation, leading the vice president 42 percent to 37 on the former, and 42 percent to 40 on the latter.
However, in his op-ed, Paul said that Trump’s tariffs would see American consumers ultimately paying even higher prices, especially in the Chinese-dominated electronics sectors.
“[China’s] manufacturers won’t bear the brunt of these tariffs—American consumers will, as the levy will be passed on to them in the form of higher prices,” Paul wrote, adding that the worst effects will be felt by low- and middle-income families.
He said that these policies will also damage the mutual economic dependencies and free global trade which have historically fostered cooperation between nations.
“Economically connected nations have more to gain from cooperation,” he said. “The alternative—protectionist policies and sanctions—often backfires, uniting such adversaries as Russia, China and Iran.”
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