The Truth About Tariffs and Global Trade: A Reality Check

The Truth About Tariffs and Global Trade: A Reality Check

Here’s an uncomfortable truth: The United States is a dominant economy, but not the dominant economy. And China is a dominant economy, but not the dominant economy. The reality? We can’t let the delusions of a single man (ahem, Trump) shape how we approach global trade. Trade isn’t just about dollars—it’s the greatest tool for peace we have.

When countries rely on each other for trade, the chances of going to war decrease. That’s why open, free trade has brought about the longest period of peace between global superpowers in history.

Now, let me get personal for a moment. I recently had an issue. I noticed a few gray hairs—not on my face or neck, but down below. So, naturally, I bought myself a sports car. A midlife crisis car, to be precise. But here’s the thing: my Italian sports car? It was made in Japan. And the engine? From Dodge. Surprise! This is the perfect metaphor for why Trump’s tariffs don’t work.

You see, there’s no direct American competitor to the Fiat 124, except for the Mazda Miata. And trust me, I don’t want people thinking I drive a car that says "I'm a Miata guy". No offense to Miata drivers, but you get my drift.

The point is: this car is an international product, not an “American-made” one. And it’s a niche product. If Trump imposed tariffs on this kind of car, we’d end up paying more, because there’s no competition for it in the U.S. market. The truth is, in a global economy, some things just can’t be made here. We’re not going to make everything in America because we’re not the best at making everything.

For example, sport bikes are mostly made in Japan and South Korea, but there’s a niche for American motorcycles like Harley-Davidson. It’s okay. Different countries have different specialties. Some make the best cars, others make the best electronics, others make amazing food and textiles. We’re no different. We have our strengths.

America’s strength is in science, technology, and engineering. We might not make the iPhone, but we design it. We might not build everything in-house, but when it comes to innovation, the U.S. is at the top.

The reality check here: Not everything is going to be made in America, and that’s okay. We need to stop thinking we can be the best at everything, because we’re not. Specialization works, and tariffs? They’re just going to make things more expensive for you.

So, let’s get out of the fantasy world and understand that trade, specialization, and a global economy are the future. Let’s stop believing that we can be the best at everything and start accepting that globalization isn’t going anywhere.