The Tariff Kings And The Fool
A tariff king is a country that implements industrial policy to protect its interests. That policy includes implementing tariffs that prevent other countries from destroying their assets.
Who are the tariff kings? China, Southeast Asia, Canada, Mexico, and most of the EU. These countries have implemented industrial policies to protect their businesses.
Who is the fool? The United States. We’re not fools because we’re stupid. We’re fools because we put globalist/neoliberal ideologues in power so they can enrich the billionaires at the expense of the middle class. NAFTA (North American Trade Agreement) was passed by the Clinton administration in 1995. The World Trade Organization (WTO), with its most-favored-nation clause, was implemented in 1995. Bush II and Obama were free traders. The loss of jobs during this period launched the beginning of the MAGA movement, but the affected workers had no one to represent them until 2015. The US has no industrial policy.
What resulted from these programs?
This chart documents the change in the US investment position versus the rest of the world. It is a calculation of the amount of foreign assets Americans own divided by the amount of assets foreign countries own in the US. In 1995, the ratio was zero. Now, it is - $ 26 trillion. That means the rest of the world has transferred $ 26 trillion to themselves from the United States since 1995.
What is the impact of that transfer?
1. During the two decades from 1960 to 1980, the US had 14 years of GDP growth of 3.5%. During the two decades from 1980 to 2000, the US had 14 years of GDP growth of 3.5%. During the two decades from 2000-2020, the US had 3 years of GDP growth of 3.5%.
2. There is a deterioration of our technology lead, because technologies invented by us (transistor, computer, etc) are now manufactured outside of the United States. That makes us dependent on other countries to supply these materials.
3. There is a loss of manufacturing jobs and loss of the innovation that comes with manufacturing. Manufacturing jobs have decreased 26% since 2013. The majority of innovation occurs at the point of manufacturing, and it employs 80% of America’s engineers, so research and development in the United States has dropped.
4. Defense products like weapons are manufactured, so losing the edge in manufacturing puts our national security at risk.
5. Decrease in the quality of life of the middle class. For the first time in history, the top 1% has more wealth than the 60% of Americans that make up the middle class. Our life expectancy has been decreasing, and we’re the only G7 country with a life expectancy under 80. Mental illness, drug use, suicide, and alcoholism are up.
This chart shows real wage increases in the US since 1964. It took 46 years (2019) for the average wage to reach the level it was in 1973. The middle class has been robbed of earnings by the Globalist/Neoliberal free trade agenda.
The middle class is the foundation of American society. Its problems are the problems of the American society as a whole.
Globalism is the reason for Trump’s obsession. He wants to upend the unfair trading system that hurts the United States. He’s part of the right populist movement worldwide that seeks an end to the globalist agenda. In my opinion, Trump’s success is guaranteed. Why? Because if one country cuts tariffs on us, we win. The sum of all the deals cut with all the countries taking advantage of us means real money for the American economy. For example, on April 8, 2025 Vietnam agreed to buy US defense and security products to tackle trade gap.
There has been criticism of Trump’s tariff program. Economists, who are mostly lefties and can’t be trusted, globalists, people in the establishment of both parties who have enriched themselves through neoliberal policies, and libertarians are criticizing Trump. Libertarians are big free traders and see tariffs as a violation of personal freedom. None of these groups care about the American middle class.
If tariffs don’t work, why is everyone else using them?
The other important aspect of this story is that the United States needs an industrial policy in addition to a tariff plan. Bringing business here won’t matter if we lack the skilled labor required for the new jobs being created. Industrial policies are;
government interventions aimed at influencing the structure and performance of specific industries or economic activities. It encompasses a range of policies, including subsidies, tax breaks, trade restrictions, and regulations, designed to foster growth, innovation, and competitiveness in targeted sectors.
Industrial policies are roadmaps for government action that represent the best interests of the people of that society.
Wrong Speak is a free-expression platform that allows varying viewpoints. All views expressed in this article are the author's own.
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One thing about the tariffs issue that I don’t understand. Why don’t all the countries affected simply call Trump’s bluff and offer to eliminate all tariffs on US exports if the US does likewise? What’s wrong with totally free trade between our countries? Most all of them have a huge competitive advantage in their lower wages so why do they need protection from high wage US workers?
I caught an older documentary from Media Matters -the far lefty one. The whole thing was about the sell out of America by NAFTA. It showed the various groups, including clergy, opposing it because it would hollow out manufacturing. Today, all those 'leftists' are crying about the tariffs. It just shows that we have become such ideologues we will knowingly drink poison if it has the right label. Judge Napolitano discussed with a U of Chicago professor a viral clip of a Chinese young man acknowledging China's manufacturing destroyed the middle class of the US. But he said, blame your oligarchy that bought yachts instead of building roads with profits. His video contained a lot of truth wrapped in a propaganda wrapping. We were sold the concept of getting cheap goods with a promise that China's leaders would transform it into a humanitarian democracy. That was a stupid arrogant belief. China has a long complex history. They are playing a long game.