Abysmally, tragically, historically stupid. That’s the only way to describe the tariffs Trump imposed yesterday. And the stupidity reaches even deeper, and has even more dire implications, than you might already be thinking.
A supposed goal of the tariffs is to raise U.S. production of critical products such as semiconductors. But the tariffs, far from leading to self-sufficiency in critical areas, will backfire and only worsen the underlying conditions that have made us dependent on other countries.
Those conditions are major shortages in the essential resources needed for advanced technologies, shortages both in commodities and in skilled workers. Such shortages are what have stood in the way of our building and operating semiconductor plants and of creating the modern electrical grid needed to be a competitive country.
The tariffs do nothing to address these underlying conditions but rather will make them worse. By pushing prices for everything higher, they will make life harder than ever for the well over 50% of Americans who struggle to afford basic necessities. The prospect of more money-printing adds further to the inflationary outlook and raises the odds of hyper-inflation. It’s a recipe for public desperation, the opposite of conditions that would let people afford the education necessary to raise overall worker skill levels.
Moreover, retaliatory tariffs are certain, and here quality counts. All of the most advanced technologies, including military technologies, require powerful permanent magnets. Without being able to obtain the critical commodities from countries we’re punishing with tariffs, the already massive gap in those magnets between the U.S. and our rivals will continue to widen. We’d have absolutely no chance if it came to the point of actual war.
Unless Trump faces reality and backs down, April 2, 2025 will go down as one of the darkest days in U.S. history. And all from a totally unnecessary, self-imposed wound.
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