Tariff Power & Hidden Costs: Why the Youth Are Paying for America’s Trade Wars

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Tariffs are one of the oldest tools in American economic policy, made to protect domestic industries. However in practice, they are often less about economic protection and more about political signaling, built to stir up nationalist sentiments and show a strict stance on trade.

Every administration, from Washington’s to Trump’s, has used tariffs to influence trade. But when their goals are to preserve American jobs, they often ignore the long term economic damages they cause: higher consumer prices, retaliatory tariffs, and global supply chain disruption.

The second Trump administrations tariffs on China were made as a hardline defense against intellectual property theft, cyber spying on American corporations, and the massive US-China trade imbalance. However, studies from the The Peterson Institute for International Economics (PIIE) showed that the average American household would have to pay $1,200 more every year due to the tariffs on Mexico and China. Tariffs on steel and aluminum made goods much more expensive, a $3,000 increase on car manufacturing on average, construction materials rose around 6% increasing infrastructure project costs.

The main agency responsible for the implementation and structure policies is the Office of the United States Trade Representative (USTR). Meant to negotiate trade deals, it typically operates without transparency or accountability. Tariffs are set in law with minimal input from Congress, often hidden beneath technical legalese. What makes tariffs especially unique and dangerous is that they are the only major form of taxation the Executive Branch can put in place without any Congressional approval.

That’s why the United States needs a Trade Accountability Act. This act would require all new tariffs to pass a diligent cost-benefit analysis, demand annual reporting to Congress and the public, and create a bipartisan trade oversight commission. This commission could veto tariffs that harm more Americans than they help.

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