And your side thought President Trump was going to throw a victory parade for Putin…
- **Protection for Local Industries**: Tariffs can act as a shield, protecting domestic industries from cheaper foreign competition. Think of it as giving your local producers a VIP pass to a less crowded market. They've been used historically for this purpose, but like any good bouncer, they can sometimes get a bit too enthusiastic and overdo it, leading to unintended consequences like higher prices for consumers.[](https://en.wikipedia.org/wiki/Tariff)[](https://www.investopedia.com/news/what-are-tariffs-and-how-do-they-affect-you/)
- **Revenue Generation**: Once upon a time, before the era of income taxes, tariffs were the rock stars of government revenue. Now, they're more like the backup singers. They still bring in some cash, but they're not the main act. For instance, in 2023, tariffs contributed less than 2% to U.S. federal revenue.[](https://finance.yahoo.com/personal-finance/what-is-a-tariff-194059448.html)
- **The Price Hike Effect**: Tariffs often just pass the cost onto consumers. It's like if you're at a bar and the bouncer charges you an extra fee to enter, you're not likely to tip more generously for your drinks. Economists generally nod in agreement that this means higher prices for goods, reducing consumer welfare but giving a boost to domestic industries (at least for a while).[](https://www.cfr.org/backgrounder/what-are-tariffs)
- **Trade Wars**: Sometimes tariffs are thrown around like gauntlets in medieval times, leading to trade wars where countries retaliate with their own tariffs. This can escalate into everyone trying to out-tariff each other, which might benefit a few but often leaves everyone worse off, like a game of economic chicken.[](https://www.theguardian.com/world/2024/nov/29/what-are-tariffs-and-how-do-they-work-explained-in-30-seconds)[](https://www.bbc.com/news/articles/c20myx1erl6o)
- **Economic Impact**: While tariffs might protect jobs in certain sectors, they can also lead to job losses in industries that rely on imports for raw materials or components. It's a bit like trying to keep all the water in one compartment of a sinking ship; you might save that section, but the rest could go under.[](https://taxfoundation.org/research/all/federal/tariffs/)
So, do tariffs work? Well, they work in the sense that they can achieve specific short-term goals like protecting certain industries or raising some revenue. But in the grand, cosmic dance of economic policy, they're often seen as a move that's out of step with the free trade waltz most economists prefer. They can indeed be a double-edged sword, slicing through consumer wallets while trying to carve a niche for domestic producers. However, like many things in life, their effectiveness depends on how they're used and the broader economic context.
The BRICS coalition is an attempt by Russia and China to nibble at the dollar’s central role in America’s global economic and financial power. Trump will break up the BRICS coalition with threats and exemplary beat downs.