President Donald J. Trump’s tariff plan is working exactly as he intended.
The initially announced steep tariffs on more than 100 countries roiled markets – and sent the mainstream media into hysteria. Some of our trading partners bristled and rattled sabers with relatively small retaliatory plans.
It was all perfectly Trumpian. The President got everyone’s attention (which is almost always his first step). He then softened his stance to open negotiations. Our trading partners now realize how serious President Trump is, and they are coming to the table to figure out how they can continue to engage with the world’s largest market.
The next challenge for the White House and Republicans will be deciding what to do with the potential flood of tariff revenues.
President Trump’s robust tariff regime will likely yield a lot of revenue. This money should be returned to the American people. There must not be any discussion of keeping tariff revenue as a new pork barrel for politicians or bureaucrats.
The Founding Fathers understood the power of tariffs. Specifically, they saw potential for tariffs to replace domestic taxes. The clearest explanation of this was President Thomas Jefferson in his 1805 second inaugural address.