Even Trump knows it: Time to ditch the tariffs that are slowing the economy | Opinion
It's telling that Donald Trump gave his 100-day speech in Michigan, the state that is likely to be the hardest hit by the president's chaotic tariff rollout.
President Donald Trump was in his element this week, returning to my home state of Michigan on April 29 for a rally marking the 100th day in office of his second term.
Trump held his last big campaign rally on the eve of the November election in this battleground state, so it made sense that he’d want to return to the place that helped him win back the White House.
“We’re here tonight in the heartland of our nation to celebrate the most successful first 100 days of any administration in the history of our country,” Trump said at the event. “We’ve just gotten started. You haven’t even seen anything yet.”
We’ve certainly seen a lot in the last 100 days. And plenty of it has been good and what the American people wanted.
Perhaps, however, Trump should take his own words to heart and do a reset of sorts, as if we hadn’t seen everything yet.
And he should start with tariffs.
Economic warning signs are flashing. Trump should pay attention.
Ahead of his visit to Michigan, Trump seemed to acknowledge the need to trim his tariffs – at least for the auto industry.
He signed executive orders offering temporary relief for automakers from import taxes. Trump originally ordered 25% tariffs on all imported vehicles and auto parts.
It’s telling that he gave his 100-day speech in Michigan, the state that is likely to be the hardest hit by the president’s chaotic tariff rollout. The auto industry is king here, and it stands to suffer severe blows if Trump doesn’t scrap these plans.
The day after his stop in Michigan, the country got some tough news. The economy had its worst quarter in three years, as the gross domestic product shrank in the first few months of the year – which was directly tied to how companies responded to the threat of tariffs.
This is not the kind of news that Trump – nor his supporters – want to see. And while he'd like to still blame his predecessor, President Joe Biden, for the lackluster results, Trump will have to own the economic reality sooner than later.
Ahead of the rollout of the original tariffs, Michigan-based Anderson Economic Group analyzed their impact on the price of cars, as well as the industry. The U.S. consumer impact the first year was estimated at $30 billion.
And AEG found that tariffs are likely to add anywhere from $2,500 to $20,000 to the price of each new car, depending on the vehicle and where it is made. That’s a sizable hit to consumers, and it will also have significant consequences for the industry, including job losses.
Even with the short-term relief, car prices and the industry will still be hurt.
Trump got elected to improve the economy. He needs to deliver.
Trump is absolutely right that the Biden administration’s policies hampered the economy. His obsession with tariffs, however, goes against the conservative free-market playbook, and for good reason.
Tariffs are taxes on imported goods that are transferred to the consumer (you and me). And although Trump seems to believe he can use tariffs to negotiate trade deals and bring more manufacturing jobs back to the United States, including Michigan, I don’t think most Americans are willing to accept the increases in costs of everyday goods that strategy entails.
That’s especially true, coming after years of Biden-fueled inflation.
The confusing tariff rules and the fact they’re constantly changing prove that this isn’t an effective way to “boost” the economy. Trump should focus instead on working with Congress to pass tax cuts and slash regulations, as he has promised.
Most important, as I’ve noted before, Trump’s unilateral tariffs exceed the power granted him by Congress and the Constitution, and lawsuits – including a new one filed by the Pacific Legal Foundation – are pushing back against that overreach.
I think Trump does want what’s best for America. But he’s very wrong when it comes to tariffs.
Ingrid Jacques is a columnist at Paste BN. Contact her at ijacques@usatoday.com or on X: @Ingrid_Jacques