Why tariffs beat treaties in a world that cheats



President Trump’s tariffs are set to snap back to the “reciprocal” rates on Wednesday — unless foreign countries can cut deals. So far, the only major players to reach agreements in principle are the United Kingdom and, ironically, China.

Others aren’t so lucky. The European Union, Japan, and India all risk facing a sharp increase in tariffs. Each claims to support free trade. India has even offered a so-called zero-for-zero deal. Vietnam offered similar terms.

Free trade is a myth. Tariffs are reality. The Trump administration should raise them proudly and without apology.

The Trump administration should be skeptical. These deals sound good in theory, but so does communism. In practice, “true” free trade — like true communism — has never existed. It’s impossible. The world’s legal systems, business norms, and levels of development differ too much.

Economists may still chase unicorns. But the Trump administration should focus on tilting the board in our favor — because someone else always will.

Free trade is a mirage

Start with the basics: Different countries are different. Their economies aren’t equal, their wages aren’t comparable, and their regulations certainly aren’t aligned.

Wages may be the most obvious example. In 2024, the median annual income for Americans was around $44,000. In India, the median annual income was just $2,400. That means American labor costs nearly 20 times more. And since labor accounts for roughly a third of all production costs, the math practically begs U.S. companies to offshore work to India.

RELATED: Trump’s tariffs take a flamethrower to the free trade lie

  Photo by JOHANNES EISELE/AFP via Getty Images

It’s China in 2001 all over again.

Back then, the average U.S. wage was about $30,000. China’s? Just $1,100. When China joined the World Trade Organization, American manufacturers fled en masse. Since 2001, more than 60,000 factories have disappeared — and with them, 5 million jobs.

The result: decimated towns, stagnant wages, and hollowed-out industrial capacity. And don’t blame robots or automation. This was policy-driven — an elite obsession with free trade that delivered real pain to working Americans.

 

We’ve run trade deficits every single year since 1974. The inflation-adjusted total? Roughly $25 trillion. And while U.S. workers produce more value than ever, their wages haven’t kept up. They’ve been undercut by cheap foreign labor for decades.

Equal partners? Think again

What if the other country is rich? Can free trade work between economic peers?

Not necessarily. Even when GDP levels match, hidden differences remain. Take regulation. America enforces labor standards, environmental protections, and workplace safety rules. All of those raise production costs — but for good reason. American-made goods reflect those costs in their price tags.

Meanwhile, competitors like China or Mexico cut corners. They dump waste, abuse workers, and sidestep accountability. The result? Cheaper products — on paper. But those costs don’t vanish. They just get pushed onto others: polluted oceans, exploited laborers, sicker consumers.

This is why the sticker price on a foreign good doesn’t reflect its true cost. The price is a lie. Cheapness is often just corner-cutting with a smile.

National strength means self-reliance

Rather than debating whether free trade is possible, we should ask whether it’s good for America.

Should we outsource core industries to foreign nations with no loyalty to us? Should we depend on countries like China for our pharmaceuticals, our electronics, or even our food?

The founders didn’t think so. The Tariff Act of 1789 wasn’t about boosting exports — it was about building an independent industrial base. A sovereign nation doesn’t beg for favors. It builds.

We aren’t just an economy. We are a people — a nation united by heritage, language, faith, and trust. That matters more than quarterly profits.

Free trade is a myth. Tariffs are reality. The Trump administration should raise them proudly — and make no apologies for putting America first.

Trump sends mixed signals on possible tax hike



President Donald Trump allegedly urged House Speaker Mike Johnson (R-La.) during a phone call Wednesday to raise the top tax rate, albeit at a much higher income level, and close the carried interest loophole amid Republican lawmakers' efforts to finalize their Trump agenda bill.

The president indicated a change of mind Friday morning, however, suggesting on Truth Social that "Republicans should probably not do it."

Last month, Trump and Johnson shot down the idea of a tax hike on the wealthiest Americans.

The president said in his April 22 interview with Time magazine, "I certainly don't mind having a tax increase."

'Our party is the group that stands against that traditionally.'

"I actually love the concept," continued Trump, "but I don't want it to be used against me politically, because I've seen people lose elections for less, especially with the fake news."

The following day, Trump came out against the idea more forcefully, telling reporters in the Oval Office that the idea of a tax hike was "very disruptive," as it might prompt wealthy individuals to flee the country, reported Politico.

"You know, the old days, they left states. They go from one state to the other. Now with transportation so quick and so easy, they leave countries. You lose a lot of money if you do that," said Trump.

Johnson similarly came out swinging against a tax hike on April 23, telling "The Will Cain Show" last month, "We have been working against that idea. I'm not in favor of raising the tax rates because our party is the group that stands against that traditionally."

A number of provisions enacted by the Tax Cuts and Jobs Act of 2017 are set to expire in December. Unless lawmakers extend the cuts, tax brackets will revert back to pre-TCJA levels. Accordingly the top individual, estate, and income tax bracket would return to 39.6% from the current rate of 37%.

One unnamed Republican source said to be familiar with Trump's Wednesday call with Johnson told NBC News that the president was considering allowing the rate to revert to 39.6% "to protect Medicaid and help pay for middle- and working-class tax cuts."

Multiple sources suggested to The Hill that while the White House advocated for allowing the top marginal income tax rate cut to expire, the administration wanted to see the 2017 cuts extended for Americans in the lower tax brackets. While the top income bracket starts this year at $626,350 per individual, the New York Times indicated the proposed restoration of the previous top rate would apply to individuals earning over $2.5 million annually.

The Hill noted that a spokesman for the House Ways and Means Committee declined to comment on any policy specifics under consideration, and the White House did not return the outlet's request for comment.

'I'm OK if they do!'

When asked about the proposed tax income increase on the upper brackets, Sen. Mike Crapo (R-Idaho), chairman of the Senate Finance Committee, told "The Hugh Hewitt Show" Thursday that he was "not excited about the proposal but I have to say there are a number of people in both the House and the Senate who are."

Crapo added, "If the president weighs in in favor of it, then that's going to be a big factor that we have to take into consideration."

Trump noted in a social media post on Friday, "The problem with even a 'TINY' tax increase for the RICH, which I and all others would graciously accept in order to help the lower and middle income workers, is that the Radical Left Democrat Lunatics would go around screaming, 'Read my lips,' the fabled Quote by George Bush the Elder that is said to have cost him the Election."

"NO, Ross Perot cost him the Election!" continued Trump. "In any event, Republicans should probably not do it, but I'm OK if they do!"

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American families thrived under Trump’s tax plan — don’t kill it



As families faced a 20% spike in inflation under President Joe Biden, it’s no surprise that a strong majority of voters oppose new tax increases.

According to new polling from the Independent Women’s Forum, 79% of likely voters in the 2026 midterm elections support extending the 2017 Tax Cuts and Jobs Act. That includes 80% of seniors, 78% of women, and 78% of independent voters.

The American people desire a simpler, fairer tax system.

Across all demographics, women voiced strong support for keeping the tax cuts in place. A majority agreed that Congress should act to stop individual income tax rates from rising in January 2026.

While inflation has begun to fall under President Trump, including last month’s slowest core inflation rate in nearly four years, more action is needed to keep prices moving downward.

Two-thirds of voters agree that now is not the time to raise taxes. That includes 65% of women and 70% of voters ages 18 to 34, who say high prices and high interest rates make additional tax increases unacceptable.

Tax cuts boosted incomes

The results speak for themselves. By 2019, median household income reached a record high of $68,703. That same year, 4.2 million Americans — many in female-headed households — rose out of poverty, bringing the national poverty rate to a record low.

A major factor was the drop in the corporate tax rate from 35% to 21%. Workers, who often shoulder the burden of corporate taxes, saw immediate gains. In response to the rate cut, many companies invested directly in their employees by raising wages, issuing bonuses, expanding benefits, funding job training programs, and creating new positions.

These changes suggest the tax law not only supported American families but also helped drive job growth and a stronger economy.

George Mason University economist Tyler Cowen reported in July — more than six years after the Tax Cuts and Jobs Act took effect — that as a result of the law, “Total tangible corporate investment went up by about 11%” and “there has been a long-run increase in GDP of 0.9% — a substantial sum in an economy of more than $27 trillion.”

Small businesses thrive

Small businesses are the backbone of the U.S. economy. These "pass-through" businesses — such as sole proprietorships, partnerships, and S-corporations — are taxed at individual income tax rates. They employ nearly half of the American workforce and represent almost 44% of America’s gross domestic product.

Before the Tax Cuts and Jobs Act, some small businesses filing under the individual income tax code faced tax rates as high as 39.6%. Less than a year after the law’s enactment, the National Federation of Independent Business’s small-business optimism index hit the highest level ever recorded during its 45-year history. The previous record was set during Ronald Reagan’s tenure.

Now, small businesses face a looming challenge: The 20% small business deduction expires at the end of this year, which could significantly increase their tax burden. This deduction was designed to ease tax burdens on small and midsized businesses just as C-corporations benefited from the corporate tax rate cut.

Tax cuts help people and small businesses. As demonstrated after the 2017 tax cuts, extending them will ease inflationary pressures by lowering business costs, raising wages, and strengthening workers’ ability to withstand economic shocks.

The voters have spoken

Our polling found 59% of likely voters — including 77% of Trump voters — agree that “The 2017 tax cuts contributed to lower prices for shoppers before inflation kicked up in 2021.” This view resonated with young voters particularly, with 64% of likely voters ages 18 to 34 in agreement. This sentiment may explain the notable shift among younger voters toward Trump during the 2024 presidential election.

The American people desire a simpler, fairer tax system, and enacting sensible reforms, extensions, and updates to the Tax Cuts and Jobs Act will do just that.

The timing, public sentiment, data, and legal pathway are aligned. It’s time for Congress to pass additional tax reforms for America.

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