Terrible Tariffs

American politicians are turning protectionist. In recent years, the Republican and Democratic parties both have found bipartisan agreement in advocating higher tariffs (not that they care to admit that fact). Although they diverged on some points, Presidents Donald Trump and Joe Biden pursued a steady policy of trade barriers and domestic subsidies. Meanwhile, American consumers are embracing international trade more enthusiastically than ever. U.S. imports climbed to new heights in 2024. This points to a basic fact that socialists, mercantilists, economic nationalists and other would-be central planners cannot grasp. At root, trade — including international trade — occurs between people, not nations. It occurs as individuals follow their natural “propensity to truck, barter, and exchange one thing for another” (in Adam Smith’s famous phrase). Left alone, people will work with one another to improve the lot of all. Trade is decidedly not a zero-sum activity.

Protectionists say often that tariffs will “save American manufacturing” and “save manufacturing jobs.” With the addition of an all-important adjective, these claims might be true. Protectionism benefits protected manufacturers and their employees — the rest be damned. The concentrated benefits pale alongside the dispersed costs. Recent history testifies to this effect. The first Trump administration’s tariffs grounded formerly soaring productivity and output in the American manufacturing sector. Moreover, for every steel- and aluminum-sector job protected by Trump’s metal tariffs, more than 30 in downstream industries — some 75,000 jobs — evaporated. Each steel-tariff-provided job came at a cost of roughly $650,0000, according to an estimate from the Peterson Institute for International Economics. The crony character of protectionism becomes obvious when examining the labyrinthine incoherence of U.S. trade policy. The tariff “consists in delivering every man over to be plundered by his
neighbor and in teaching him to believe that it is a good thing for him and his country because he may take his turn at plundering the rest,” William Graham Sumner said. Nearly a century and a half later spoke, hordes of corporate lobbyists still seek to contort the tariff schedule every which way for their respective employers’ narrow benefit.

Tariffs beget more tariffs, as tariff-affected industries scamper to Washington to beg for their own protection, seeking pain relief from input-cost overruns. What’s more, the number of exclusions requested and granted further evidences the sprawling, dysfunctional nature of the tariff schedule. “The Commerce Department keeps a handy list of over 425,000 company requests just for steel and aluminum tariff exclusions in the last five years,” the Manhattan Institute’s Judge Glock reported. “More than 200,000 such exclusions have been granted.” This is less sound economic policymaking than the arbitrary dispersal of favors. When asked about protectionism, Americans — never an ideological bunch — do not object per se. But when asked whether they would, e.g., pay $10 more for an American-made frying pan, supermajorities decline. Most voters do not study economics closely; they are occupied with far more important things, such as their families and their jobs. Their sympathies can be aroused by
the stories spun by protectionist politicians. But Americans continue to support free trade enthusiastically with their wallets, if not with their ballots. The divergence of Americans’ preferences as expressed at the ballot box and at the checkout counter creates an awkward status quo. If protectionists prevail, however, a resolution is inevitable. The laws of economics bend for no political movement, and the higher prices that inevitably result from tariffs will make clear to voters how badly the protectionists have misled them.

The Promising Push on Plastics

Over his first four weeks in office, President Donald Trump signed a number of executive orders that reduce regulatory burdens on American job creators. Such a vision will help reinvigorate the economy and the nation’s industrial base. Of course, these orders will help all industries, but are particularly needed to reverse the damage done by the previous administration to the plastics sector. Plastics were a targeted casualty of the Biden administration’s war on manufacturing. Excessive and inconsistent regulations resulted in hundreds of billions of taxpayer dollars going toward government bureaucracy rather than jobs and innovation. Instead of crippling the industry, policymakers must make it easier to affordably and cleanly produce plastics domestically. In a noteworthy move in early February, the President signed a reversal of the Biden administration’s policy that had essentially prohibited plastic straws. This executive order marked a clear shift in how the new administration will
treat plastics compared to the previous one. This is a strong first step toward correcting how the federal government treats a backbone of the country’s manufacturing base. This shift makes sense. Plastics support more than 26% of all manufacturing and more than 700,000 well-paying jobs, with salaries averaging almost $70,000 per year. These are jobs that are essential for a strong middle class.

First, plastics play a critical role in manufacturing, allowing for the creation of products that millions of Americans depend on. For example, in health care, plastics make possible miracle products such as custom prosthetics, as well as everyday products like medical tubing. In the food industry, advanced packaging materials – made with plastics – let Americans transport foods farther. It also helps them keep them longer, slashing food waste and providing Americans with diverse foods sourced from across the nation. There are similar examples in every industry, including automotives, construction, aerospace, clothing, machinery – the list goes on. Second, the U.S. plastics industry is favorable for international trade. Producing more plastic domestically will also help accomplish a key trade priority of the president without needing a single tariff. American plastics are in demand worldwide. The industry also exports finished goods and component products across the globe, resulting in
more money for the American economy. Third, plastics are necessary for American national security. The water supply, electrical grid, and telecommunications networks all depend on critical plastic components. American military equipment and specialized clothing, such as bullet proof vests, also depend on plastics.

Trump should call on lawmakers and agencies to do everything in their power to ensure a steady supply of plastics produced in the U.S. One way to support greater domestic plastic manufacturing is through policies and rules that incentivize advanced recycling of plastics in the U.S. Through innovative technologies, new, virgin-quality plastics can be manufactured out of used plastics. Promoting advanced recycling will contribute to the reliable domestic supply of plastics the country needs for the full range of its manufacturing needs. In addition to regulatory changes, Congress can enact legislation that supports advanced recycling to modernize outdated recycling infrastructure. This would increase the use of recycled material in new products, while significantly reducing plastic waste. The current state of recycling in the U.S. is a fragmented mess, spanning 9,000 jurisdictions with inconsistent recycling practices. Some bipartisan proposals floated would create a national recycling
standard, allowing for more used plastic to be transformed into the new plastic that is the lifeblood of manufacturing.Also vital to this effort is preserving the tax reforms of the Tax Cuts and Jobs Act (TCJA). That foundational law supported manufacturing-friendly policies such as a lower corporate tax rate and immediate expensing of investments. With the TCJA up for renewal this year, Congress should look to double down on those key pro-growth policies and restore the research and development tax credit.

President Trump’s common-sense support of the plastics industry is a positive shift for all American industries that have been working hard to expand domestic manufacturing and boost local economies throughout the country. Through targeted rule changes and forward-looking tax policies, President Trump can revitalize America’s plastics industry for the better.

Blogs:

Monday: Connect Willmar Means Higher Property Taxes ([link removed])

Tuesday: Taxpayers Footing the Bill for Useless Safety Campaigns and Recalls ([link removed])

Wednesday: The Collateral Damage of Tariffs ([link removed])

Thursday: TPA Denounces President Trump’s ‘Liberation Day’ Tariffs ([link removed])

Friday: What You Should Be Reading: March 2025 ([link removed])

Media:

March 27, 2025: RealClear Markets ran TPA's op-ed, "End on An Error at the Federal Trade Commission."

March 27, 2025: WBFF Fox45 Baltimore (Baltimore, Md.) quoted me in their article, "Waste Watch: Has Maryland been as efficient as Gov. Wes Moore claims it has?"

March 27, 2025: WBOB-AM Radio (Jacksonville, Fla.) interviewed me for their segment on child tax credits.

March 27, 2025: WBFF Fox45 Baltimore (Baltimore, Md.) interviewed me to talk about Maryland's budget deficit.

March 27, 2025: States News Service quoted me in their article, "LEE INTRODUCES BILL MAKING TRUMP BAN ON CENTRAL BANK DIGITAL CURRENCY PERMANENT."

March 27, 2025: WBFF Fox45 Baltimore (Baltimore, Md.) quoted me in their article, "Nick Mosby faces lawsuit from credit card company over unpaid debt.".

March 28, 2025: States News Service quoted me in their article, "KAINE, KLOBUCHAR, AND WARNER ANNOUNCE EXPECTED VOTE TIMING ON THEIR BILL TO UNDO CANADA TARIFFS THAT WILL RAISE COSTS."

March 28, 2025: Daily Kos mentioned TPA in their article, "14 Signs That The Tide is Turning In OUR Direction: GNR."

March 30, 2025: The Baltimore Sun (Baltimore, Md.) ran TPA's op-ed, "Don’t be fooled by false promise of tariffs | COMMENTARY."

March 31st, 2025: DJ Journal/InsideSources (Washington, D.C.) ran TPA's op-ed, "As USPTO Director, Squires will Keep America Innovating."

March 31, 2025: WBFF Fox45 Baltimore (Baltimore, Md.) interviewed me to talk about Trump's "Liberation Day" tariffs.

March 31, 2025: Yahoo!News mentioned TPA in their piece, "Senior Citizen, Healthcare, and Consumer Advocates Send Letter Urging CMS to Rescind Local Coverage Determination."

March 31, 2025: AP News mentioned TPA in their piece, "Senior Citizen, Healthcare, and Consumer Advocates Send Letter Urging CMS to Rescind Local Coverage Determination."

March 31, 2025: The Baltimore Sun (Baltimore, Md.) quoted me in their article, "Mosby faces lawsuit from credit card company over unpaid debt."

March 31, 2025: The Baltimore Sun (Baltimore, MD) quoted me in their article, "State's budget woes spark comparisons with both Virginia and Pennsylvania."

April 1, 2025: Telegraph Herald (Dubuque, Iowa) ran TPA's op-ed, "Londono: Food and Drug Administration not prepared for tech-driven innovations."

April 1, 2025: WGSO 990AM Radio (New Orleans, La.) interviewed TPA's David McGarry for their Ringside Politics show.

April 1, 2025: FOX5 DC (Washington, D.C.) interviewed TPA's David McGarry to talk about tariffs and Trump's "Liberation Day."

April 2, 2025: CBS News mentioned TPA in their article, "Trump to announce new tariffs amid fears of higher prices."

April 2, 2025: WKRC/NBC News (Cincinnati, OH) mentioned TPA in their discussion of tax revenue.

April 2, 2025: MSN News mentioned TPA in their article, "Trump to announce new tariffs amid fears of higher prices."

April 2, 2025: Forbes mentioned TPA in their article, "FCC Under Trump Creates More Questions Than Answers For Media."

April 2, 2025: WBFF Fox5 Baltimore (Baltimore, Md.) quoted me in their article, "Amid residency concerns, taxpayers also fund personal driver for BCPS superintendent."

April 2, 2025: American Family News mentioned TPA in their article, "Those container ships going to, and going fro, following bumpy tariff road."

April 2, 2025: Targeted News Service mentioned TPA in their article, "Industry Support Grows Ahead of Vote on Kaine, Klobuchar & Warner's Bill to Undo Trump's Canada Tariffs."

April 2, 2025: WBFF Fox5 Baltimore (Baltimore, Md.) interviewed me for their piece on Baltimore County Schools superintendent.

April 3, 2025: Industrial Goods Monitor Worldwide mentioned TPA in their article, "CEI joins Market Institute on Nippon Steel investment."

April 3, 2025: WBFF Fox5 Baltimore (Baltimore, Md.) quoted me in their article, "Waste Watch: Balt. Mayor budget plan aims to close city deficit with fines and fees."

April 3, 2025: WBOB-AM Radio (Jacksonville, Fla.) interviewed me to talk about Medicare Advantage.

April 3, 2025: WBFF Fox5 Baltimore (Baltimore, Md.) interviewed me for their piece on the fiscal situation in the city of Baltimore and the state of Maryland.

Have a great weekend!

Best,

David Williams
President
Taxpayers Protection Alliance
1101 14th Street, NW
Suite 500
Washington, D.C. xxxxxx

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