There is a peculiar brand of “freedom” that involves the government reaching into your pocket to tell you where you can and cannot buy your steel.

Locke Notes ([link removed] )

Good evening,

There is a peculiar brand of “freedom” that involves the government reaching into your pocket to tell you where you can and cannot buy your steel.

On April 2, 2025, a day the federal government curiously dubbed “Liberation Day,” North Carolina’s manufacturers received a rather expensive gift: a universal 10% tariff on all imported goods.

Locke Notes Survey

Do you believe the 10% tariff on all imported goods should be lifted?

No
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Yes
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(You can find the answer to last week's survey question at the bottom of this email)

Bob Luddy, the president of Raleigh-based CaptiveAire, isn’t exactly celebrating ([link removed] ) . As the head of a major North Carolina manufacturer, Luddy understands a fundamental truth that often escapes the halls of power: tariffs are a tax on American businesses and American consumers.

Luddy Thumb ([link removed] )

The logic of protectionism is as old as it is flawed. It assumes that by making foreign goods more expensive, we somehow make ourselves richer. But as Luddy points out, raising the cost of raw materials leads to a simple, inevitable result: a decrease in demand.

For small and emerging businesses, these cost increases are devastating. Unlike multinational giants, they lack the massive cash reserves to absorb a 10% hit to their margins. They are forced to choose between raising prices on their neighbors or cutting back.

The siren song of “making everything in America” is a powerful one, but it ignores the stubborn reality of comparative advantage, an economic law that hasn’t changed since the days of Adam Smith. We rely on a global network to produce high-quality goods at the best prices.

“Individuals can produce to their maximum capabilities based on their God-given talents, and when you interfere with that, you have fewer goods produced, you have less innovation, and less creativity,” Luddy said. “The government should do everything possible to provide the maximum freedom consistent with fair and justice for all citizens.”

True economic liberation doesn’t come from a government-imposed price hike. It comes from the ability of North Carolinians to work, create, and trade without a bureaucratic chaperone.

Perhaps we should spend less time “protecting” our economy and more time letting it breathe.

Esse quam videri,

Donald Bryson

CEO

John Locke Foundation

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