One of the main arguments for tariffs has been that they will help American manufacturing and bring back jobs.
Good evening,
President Donald Trump’s universal tariff policy is still on hold until August 1st.
But, hopefully, the administration will ditch this tax on American consumers (which is what a tariff really is) before then.
One of the main arguments for tariffs has been that they will help American manufacturing and bring back jobs.
We all want stronger American factories, but tariffs aren’t the answer. Rather, they act as an additional tax, increasing the cost of business inputs and consumer goods.
Luckily, there is a better approach.
First, we should lower corporate tax rates. Corporate tax rates are (on average) lower in Europe and Asia than in America. Lowering our rate to be more globally competitive would empower manufacturing companies to invest in new factories and reshore jobs.
Second, let’s ditch the Jones Act. The Jones Act is an old 1920s law hiking up the cost of shipping by requiring ships carrying goods between U.S. ports to be (1) U.S.-built, (2) owned, and (3) crewed by Americans.
These free-market fixes would cut costs, boost competition, and could spark an American manufacturing renaissance.
You can watch our latest explainer on tariffs and learn how the right way to prosperity is free markets for free people.
