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The president has promised big results, from raising revenue to reviving domestic manufacturing. But many of his goals undermine one another.
Feb. 28, 2025Updated 8:00 a.m. ET
President Trump has issued an unremitting stream of tariff threats in his first month in office, accompanied by nearly as many reasons for why they should go into effect.
Tariffs on Canada, Mexico and China are a cudgel to force those countries, America’s largest trading partners, to crack down on the flow of drugs and migrants into the United States. Levies on steel, aluminum and copper are a way to protect domestic industries that are important to defense, while those on cars will prop up a critical base of manufacturing. A new system of “reciprocal” tariffs is envisioned as a way to stop America from being “ripped off” by the rest of the world.
Those goals are almost always followed by another reason for hitting allies and competitors alike with tariffs: “Long term, it’s going to make our country a fortune,” Mr. Trump said as he signed an executive order on reciprocal tariffs this month.
Mr. Trump maintains that tariffs will impose few, if any, costs on the United States and rake in huge sums of revenue that the government can use to pay for tax cuts and spending and even to balance the federal budget.
But trade experts point out that tariffs cannot simultaneously achieve all of the goals that Mr. Trump has expressed. In fact, many of his aims contradict and undermine one another.
For instance, if Mr. Trump’s tariffs prod companies to make more of their products in the United States, American consumers will buy fewer imported goods. As a result, tariffs would generate less revenue for the government.
