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
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.
Canada bows to Donald Trump — tariff negotiations are back on
In the trade war with the rest of the world, Canada threatened to tax Big Tech companies in America. However, just a few comments from President Donald Trump caused Canada to back down, and tariff negotiations are back on the table.
“So Canada put a charge on some of our companies, and Canada’s been a very difficult country to deal with over the years, and we have all the cards,” Trump said in a press conference last week.
“Economically, we have such power over Canada, I’d rather not use it, but they did something with our tech companies today trying to copy Europe. You know, they copied Europe. It’s not going to work out well for Europe, either, and it’s not going to work out well for Canada. They were foolish to do it,” he continued.
Trump went on to explain that while America does a “little” business with Canada, they do “most of their businesses with us.”
“They’ve had farmers that are getting like 300, 400, 200% in tariffs. Nobody’s ever seen anything like it. We have cases, you don’t read this, and the people don’t report it, but they charge us 400% on some dairy products,” he said, adding, “And it’s not fair to our farmers, and we’ve got to protect our farmers.”
“Now, Canada is the second largest United States trading partner after Mexico, also, the largest buyer of United States exports, which is kind of to President Trump’s point, they stand a lot to lose here,” BlazeTV host Sara Gonzales comments.
“This tax plan would have put a 3% tax on companies like Amazon, Google, Meta, Uber, Airbnb, and it also would be retroactive going all the way back to January of 2022. So for some of these companies, I mean, that’s quite a bit of money,” she says.
Now, Canada caved and dropped the digital tax plan in order to give themselves more time to reach a deal with President Trump by July 21.
Gonzales isn’t surprised by Canada’s move, adding, “It’s the art of the deal man.”
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S&P 500 hits new record high following months of Trump tariff doom and gloom
Just weeks into President Donald Trump's second term, the S&P 500 — which had risen over 20% in the previous two years — rocketed to record highs, driven up in part by a substantive increase in corporate earnings as well as the "Trump bump."
After marking its all-time high of 6,144.15 on Feb. 19, the index soon began to slide, prompting anxiety among some investors and doom-saying from various analysts, especially over the potential impact of the president's tariff proposals.
For instance, Andrew Brenner, head of international fixed income at National Alliance Securities, told the New York Times a month ahead of Trump's "Liberation Day" tariff announcements, "The tariff rhetoric has become daily and extreme, sentiment is awful and trading is on edge."
In the days immediately following Trump's April 2 announcements, the S&P 500 had its worst day since COVID-19 crashed the economy in 2020, then shed many trillions in market value, prompting more of the concerns and shirt-rending that would become customary over subsequent weeks.
After months of doom and gloom, the S&P 500 hit a new record on Friday, marking a stunning comeback from April. At market open, the S&P 500 went north of 6,154.79.
CNBC suggested that the comeback — what Bloomberg indicated is "shooting toward the second-biggest percentage-point recovery in history" — was driven in part by strong corporate earnings, a stable labor market, and new energy in the AI trade. It certainly doesn't hurt that trepidation over tariffs has largely given way to optimism over Trump's trade deals.
The possibility that Trump might not ultimately implement his Liberation Day tariffs may also have been factored into investors' optimism. After all, the rise came on the heels of White House press secretary Karoline Leavitt noting that Trump's July tariff deal deadline "is not critical" and "could be extended."
There's also the matter of Commerce Secretary Howard Lutnick's recent revelations to Bloomberg News that the U.S. and China finalized its trade deal this week and that the Trump administration has imminent plans to reach trade deals with 10 other major trading partners.
"We're going to do top 10 deals, put them in the right category, and then these other countries will fit behind," said Lutnick.
RELATED: Trump’s tariffs take a flamethrower to the free trade lie
"The markets are looking forward, seeing lower interest rates, less regulation in the banking sector, a shift from austerity to stimulus in Europe, and a less biting inflation and tariff environment," Jamie Cox, managing partner at Harris Financial Group, told CNBC. "This sure isn’t the stagflation story we've been told to brace for."
Paul Stanley, chief investment officer at Granite Bay Wealth Management, said to CNN regarding the S&P 500's $9.8 trillion roundtrip, "The market is betting on continued progress on trade and a de-escalation of tensions in the Middle East is giving investors confidence."
Entrepreneur and business expert Carol Roth told Blaze News that "it's important to remember that the market is not the economy, and that other factors, including the Federal Reserve and government policy, have impacted the market, particularly over the last couple of decades."
"The president's heavy-handed approach to tariffs was not expected by the market, but as there had been more certainty gained regarding tariff policy and a belief that further de-escalation is more likely than escalation, the market has moved past that hurdle," explained Roth. "In recent days, commentary from Fed members that suggests a Fed rate cut may be on the table for July has supported risk assets."
Roth noted, however, that "any long-tail effects from tariffs that show up later in the year, or challenges that arise from financing/refinancing our massive debt and deficit could shift the outlook and impact market returns."
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China’s greatest export isn’t steel — it’s industrial theft
President Trump last week announced a deal in principle with China: The U.S. will impose 55% tariffs on Chinese goods, while China will respond with a 10% tariff on American goods. In return, China will continue supplying rare earth minerals and magnets, and Chinese students will keep attending American universities. The deal’s finer details remain in flux.
Noticeably absent from the agreement? Any commitment from China to protect American intellectual property. That’s no accident. China denies stealing American IP altogether, chalking up clear examples of theft to normal “market behavior.”
Trump is the first president in half a century to take trade seriously. But tariffs alone won’t fix this.
And in a way, they’re right. IP theft is normal in China. Some of the country’s most successful firms, like Huawei, were built on stolen American technology. For the Chinese Communist Party, theft isn’t an embarrassment. It’s a strategy.
The great Chinese rip-off
In 1983, much of China was still preindustrial. No engines, no tractors, no cars. Labor happened by hand or with the help of animals. Rural China looked a lot like colonial America.
But in just a few decades, China transformed into an industrial superpower. It now produces three times more industrial output than the U.S., including 24 times more steel and far more oceangoing ships. It has the world’s largest economy by purchasing power.
How did they do it? Theft.
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A 2024 House Homeland Security Committee report estimates that China steals between $300 billion and $600 billion in American IP annually. A 2017 report from the Commission on the Theft of American Intellectual Property drew similar conclusions. If we use a midpoint estimate and track the losses back to 2001 — when China joined the World Trade Organization — America has lost nearly $10 trillion in intellectual property to China.
China gets this technology in several ways. First, through direct espionage. Only 29% of these operations target military secrets. The rest focus on industrial and commercial tech: manufacturing methods, chemical formulas, blueprints. Espionage alone accounts for roughly $180 billion in losses each year.
Second, through counterfeiting. According to the Organisation for Economic Co-operation and Development, 60% of all counterfeit goods sold worldwide come from China. In the U.S., that number rises to 87%. Counterfeiting costs U.S. businesses up to $291 billion per year.
Third, through piracy on Chinese e-commerce platforms. The United States Trade Representative reports that American rights-holders lose billions thanks to widespread digital theft of films, music, software, books, and branded products. Of the $2.16 trillion in Chinese e-commerce sales in 2024, roughly 40% were pirated or counterfeit. That’s $864 billion in lost profits — just last year.
Americans deserve to benefit from their own labor and ingenuity. But China continues to loot our IP with impunity, and our leaders let it happen.
The golden goose gets gutted
Beyond outright theft, China siphons off American technology through strategic corporate acquisitions and forced technology transfers.
The U.S. runs a trade deficit with China of more than $300 billion annually. To cover it, we sell assets — ownership stakes in American companies. Chinese investors target U.S. tech and industrial firms, acquire shares, then funnel proprietary information back to China. Once the intellectual property is transferred, they sell off their holdings.
Technically legal. Strategically disastrous.
China also compels U.S. companies to “partner” with Chinese firms when setting up operations inside the country. The Chinese side runs daily operations and learns the ropes. In exchange, Americans share their tech. Eventually, the Chinese copy the technology, replicate the products, and compete directly with the very companies that taught them.
That’s how Huawei rose to prominence. The company reverse-engineered American products, then used its home-field advantage to grow into the world’s third-largest smartphone maker.
China’s strategy works. And American businesses, addicted to short-term profits, keep falling for it. The consequences aren’t just economic — they’re geopolitical. This is how the CCP turned a rural backwater into a peer competitor.
Trump is the first president in half a century to take trade seriously. But tariffs alone won’t fix this. As I argue in my book “Reshore,” the only way to win this fight is to bring America’s factories home. Reshoring means economic independence. It also cuts off China’s access to the technology they’ve been stealing for decades.
Until then, we’re funding our own decline.
Trump’s tariffs take a flamethrower to the free trade lie
The globalist fairy tale is finally unraveling — and not a moment too soon.
For decades, Americans were sold the shiny promise of globalization: open markets, booming trade, cheaper goods, and peace through economic integration. But behind the glittering sales pitch was a brutal reality — the slow, deliberate hollowing out of the American middle class.
Trump’s tariffs are not just about trade. They’re about rebuilding what our elites sold off piece by piece.
Enough of this.
President Donald Trump’s recent announcement on tariffs sent the elites — those who profited most from this decades-long experiment — into full panic mode, and for good reason. Their gravy train may finally be running out of track.
This isn’t about economic theory. This is about the lives, livelihoods, and dignity of the American people — especially those in towns and cities that once hummed with the sound of industry.
How it started
The North American Free Trade Agreement was the appetizer in a global feast that served American manufacturing to foreign competitors on a silver platter. Even President Bill Clinton, at the NAFTA signing ceremony in 1993, seemed eager to get past the domestic details and embrace the coming wave of globalization.
By the early 2000s, the United States was importing at unprecedented rates. Today, the trade deficit with the European Union alone is $235 billion. That’s not trade — that’s surrender. Our deficit with Europe hasn’t fallen below $100 billion since 2011.
None of this happened by accident.
It began with a handshake in 1972, when President Richard Nixon traveled to Mao Zedong’s China. At the time, China was riding bicycles and rationing rice. No one imagined that opening the door to trade would lead to the economic superpower we face today.
But by 2001, that door had been blasted open. China joined the World Trade Organization, committing to lower tariffs and removing trade barriers. American markets were flooded with cheap Chinese goods — and American workers were left holding an empty lunch pail.
The result was a trade deficit with China that ballooned to $295 billion last year. That’s the largest deficit we have with any country. Our total trade deficit in 2024 was a record $1.2 trillion — the fourth consecutive year topping $1 trillion.
The human toll
The fallout from this one-sided relationship with China is staggering. A 2016 MIT study found that, in the decade following China’s World Trade Organization entry, the U.S. lost 2.4 million jobs — nearly a million in manufacturing alone. The researchers concluded that international trade makes low-skilled workers in America “worse off — not just temporarily, but on a sustained basis.”
You’d think a quote like that would be plastered across every office in Congress. But no. The political class — especially on the left — chose to ignore it.
Instead, they wring their hands in confusion when working-class Americans turn to a leader like Donald Trump. “Why are they so angry?” they ask, while standing atop the wreckage of towns they helped dismantle.
About that wreckage
In Galesburg, Illinois, Maytag once employed 5,000 workers. The last refrigerator rolled off the line in 2004. The site is now rubble and weeds.
Youngstown, Ohio — once a titan of American steel — has lost 60% of its population since the 1970s. Gary, Indiana, once home to U.S. Steel’s largest mill, has over 10,000 abandoned buildings. In Flint, Michigan, over 80,000 GM jobs vanished. By 2016, over half of men ages 25 to 54 in Flint were unemployed. Buick City, once a symbol of industrial might, was demolished in 2002.
Detroit, once richer than Boston, is now 40% poorer. The U.S. auto parts industry lost 419,000 jobs in the decade after China joined the WTO.
Even NPR admitted that “the China Shock created what looked like miniature Great Depressions” in these areas.
From dream to despair
Between 2000 and 2014, America lost 5 million manufacturing jobs — the steepest decline in American history.
Meanwhile, in the same time period, corporate profits soared 600%. CEO pay has ballooned to 290 times that of the average worker. In 1965, it was 21 times. Since 1978, CEO compensation has grown by over 1,000%. Regular worker pay? Just 24%.
They told us the rising tide would lift all boats. Turns out, it mostly lifted yachts. And the rest of the boats? Capsized.
This economic assault came with a steep psychological toll.
A 2017 Princeton study found a link between rising deaths of despair — suicide, alcoholism, drug overdoses — and job losses in trade-exposed areas.
Since 1999, overdose deaths in America have increased sixfold. In Ohio, they rose 1,000% between 2001 and 2017. The hardest-hit areas? Deindustrialized, working-class communities.
The American middle class is vanishing. In 1971, 61% of households were middle class. By 2023, it was just 51%. In 1950, manufacturing jobs made up 30% of total U.S. employment. Today, they make up just 8%.
RELATED: Why tariffs are the key to America’s industrial comeback
There are fewer Americans working in manufacturing today than there were in 1941 — before we entered World War II — despite our population more than doubling.
This collapse hit black workers especially hard. Between 1998 and 2020, more than 646,000 manufacturing jobs held by black Americans disappeared — a 30% loss in that sector.
A reckoning long overdue
Trump’s tariff push is a long-overdue confrontation with the failed consensus of globalization. For 25 years, the arrangement has been spectacular — for China and for U.S. corporations chasing cheap labor. But for America’s workers and towns, it has been catastrophic.
Yes, the corporate press is scoffing. CBS News recently “fact-checked” Trump and Vice President JD Vance’s claim that America has lost 90,000 factories since NAFTA. The correct number, they said, was actually 70,500.
Oh? Only 70,500? As if that’s supposed to be reassuring.
These aren’t merely statistics. These are livelihoods — entire communities turned into ghost towns. Every shuttered factory was once a promise of stability, dignity, and upward mobility. And with each closure, that promise was betrayed.
We’ve allowed globalization to crush the backbone of this country — the working men and women who don’t show up on CNBC but who built the very foundation we all stand on.
Trump’s tariffs are not just about trade. They’re about sovereignty. They’re about self-respect. They’re about rebuilding what our elites sold off piece by piece.
This is not a perfect plan. But it’s the first real attempt in decades to confront the human cost of globalization. It’s a wager that America can still choose dignity over dependence, self-sufficiency over servitude.
Let’s hope we’re not too late.
Tariffs vs. free trade: Which is BETTER for the American auto industry?
When it comes to tariffs on foreign cars, President Trump seems to have a simple philosophy: “The higher you go, the more likely it is they build a plant here."
This bold strategy is already showing results, with foreign automakers investing billions of dollars in American production. But it's also raising costs for automakers and consumers.
When automakers build plants in the US, they create jobs not only in manufacturing but also in related industries like steel, logistics, and technology.
So what does this mean for the cars we drive, the jobs we create, and the prices we pay? Let’s dive into the details and unpack why this story matters to every American — and why you’ll want to understand the full impact.
Tariffs as a catalyst for US investment
Trump’s tariff strategy is straightforward: Make it more expensive to import vehicles, and automakers will have no choice but to build factories in the United States.
It’s a high-stakes chess move, and early signs suggest it’s working. General Motors recently announced a $4 billion investment in three U.S. plants, including a shift of some SUV production from Mexico to American soil.
Hyundai, too, made headlines in March with a $21 billion commitment, which includes a new U.S. steel plant. Trump didn’t mince words when he credited these moves to his tariff policies. “They wouldn’t have invested 10 cents if we didn’t have tariffs,” he said, pointing to the ripple effect on industries like American steel, which is seeing a resurgence.
RELATED: Revving up America: Trump’s Nippon Steel deal puts the pedal to the metal
These investments are more than just numbers — they translate into jobs, economic growth, and a renewed sense of pride in American manufacturing. For communities hit hard by decades of outsourcing, the prospect of new factories is a beacon of hope. But the story isn’t all rosy. Automakers are feeling the pinch, and some of those costs are trickling down to consumers. The question is: Will the long-term gains outweigh the short-term pain?
The auto industry’s pushback
Not everyone is cheering Trump’s tariff plans. General Motors, Ford, and Stellantis have been vocal about their concerns, urging the White House to roll back the 25% tariffs imposed on imported autos. They argue that these tariffs drive up costs, making it harder to compete in a global market.
Adding fuel to the fire, automakers are frustrated by a recent deal that reduces tariffs on British car imports but leaves Canadian and Mexican production facing the full 25% levy. This discrepancy has created tension, as North American supply chains are deeply integrated, with parts and vehicles crossing borders multiple times before reaching showrooms.
Mexico, however, has secured a partial reprieve. Cars assembled in Mexico and exported to the U.S. will face an average tariff of 15%, thanks to reductions tied to the value of U.S. content in those vehicles. This compromise shows the complexity of Trump’s tariff strategy — it’s not a one-size-fits-all approach, and automakers are navigating a maze of regulations to keep costs down. Still, the pressure is on, and companies are being forced to rethink their global production strategies.
The cost of tariffs: Who pays the price?
Tariffs are a double-edged sword. On one hand, they’re spurring investment in U.S. factories; on the other, they’re driving up costs for automakers and, ultimately, consumers.
Ford Motor recently raised prices on some models, citing tariff-related costs that are expected to shave $1.5 billion off its adjusted earnings.
General Motors is grappling with an even bigger hit, estimating its tariff exposure at $4 billion to $5 billion, with roughly $2 billion tied to affordable Chevrolet and Buick models imported from South Korea.
Subaru of America has also hiked prices, a move that reflects the broader industry trend.
For car buyers, this could mean sticker shock at dealerships. Higher production costs often lead to pricier vehicles, especially for entry-level models that rely on imported components.
The average American family shopping for a reliable sedan or SUV might feel the squeeze, particularly as inflation and supply-chain challenges already strain household budgets.
But there’s a silver lining: As automakers shift production to the U.S., new jobs and economic opportunities could offset some of these costs over time. The trade-off is real, and it’s worth exploring how this balance will play out.
It’s also important to note that there are over 2.5 million cars that are ready to sell that are pre-tariffed. So there are some deals out there if you shop around.
Why tariffs matter to you
You might be wondering: Why should I care about tariffs if I’m not in the auto industry?
The answer lies in the broader impact. Tariffs don’t just affect car prices — they shape the economy, influence job creation, and even touch on national pride. When automakers build plants in the U.S., they create jobs not only in manufacturing but also in related industries like steel, logistics, and technology. These are the kinds of jobs that sustain communities, from small towns in the Midwest to bustling industrial hubs.
Moreover, Trump’s tariff push is part of a larger conversation about America’s place in the global economy. By incentivizing domestic production, the administration aims to reduce reliance on foreign manufacturing, a move that resonates with many Americans who want to see “Made in the USA” mean something again.
But it’s not without risks. Higher tariffs could strain trade relationships with allies like Canada and Mexico, and they might invite retaliatory tariffs on American exports. The stakes are high, and the outcome will shape the auto industry — and the economy — for years to come.
The road ahead: What to watch for
As Trump hints at raising tariffs soon, all eyes are on how automakers will respond.
Will they increase U.S. investments, as GM and Hyundai have done, or will they find ways to absorb or pass on the costs? The Detroit Big Three are already under pressure to compete with foreign automakers, which may have more flexibility in navigating global supply chains. Meanwhile, consumers will be watching their wallets, weighing the benefits of American-made vehicles against the reality of higher prices.
Another key factor is the global response. Countries like Mexico and Canada, integral to the North American auto industry, may push back against U.S. tariffs, potentially escalating trade tensions.
At the same time, the steel industry, a beneficiary of Trump’s policies, could see further growth as demand for American-made materials rises. It’s a complex web of cause and effect, and the next few months will be critical in determining whether Trump’s gamble pays off.
Why you should share this story
This isn’t just an auto industry story — it’s an American story. Whether you’re a car enthusiast, a worker in a manufacturing town, or just someone who cares about the economy, Trump’s tariff strategy affects you. It’s about jobs, innovation, and the future of American industry. Stay informed about policies that could reshape the way we buy and drive cars.
So what’s the bottom line? Trump’s tariff push is a bold move to bring manufacturing back to the U.S., and it’s already yielding results with billions in new investments. But it comes with challenges — higher costs for automakers and consumers, trade tensions, and an uncertain road ahead. By reading this far, you’ve gotten a front-row seat to one of the most consequential economic debates of our time.
So let's keep the conversation going. What do you think about Trump’s tariff strategy? Will it drive American innovation, or is it a risky bet? The answers are still unfolding, and you won’t want to miss what happens next.
Tariffs Aren’t Raising Prices, CNN Admits After 5 Articles Insisting Tariffs Were Raising Prices
“Prices would rise — sharply — they said, reigniting an inflation crisis that tens of millions of Americans had elected [President Donald Trump] to solve,” CNN’s David Goldman wrote on Friday. “But that massive, tariff-induced inflation spike hasn’t materialized. Not even close.” Indeed, it hasn’t. But who exactly is Goldman referring to when he says, […]America’s Economy Is Still Strong, Disappointing Democrats
While liberals hide indoors in fear of the falling sky, the rest of us recognize it’s actually beautiful outside in a new day brought by the Trump administration.Trump’s Trade Negotiations Should Include A Push For Free Speech
There should be more to economic and trade policy than merely the price of goods.Today's top stories
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