Myth 10: Tariffs Make America Rich

This is the tenth installment in a holiday-themed series aimed at correcting common misconceptions about trade. Each day until Christmas, economists Christine McDaniel and Veronique de Rugy will address a new claim about trade or tariffs while providing additional resources for those interested in learning more about the topic.

Myth: Tariffs Make America Rich

Don’t buy this snow job! President Trump appears to believe that tariffs will make America rich again. But you can’t lie to the markets, any more than Ebenezer Scrooge could lie to the Ghost of Christmas Past. The markets know that tariffs make us poorer. That is why the financial markets took a nosedive recently when the President announced his love of tariffs and plans to make America rich with more of them.

Suggested Resources

1. “Did Tariffs Make America Great? A Long-Read Q&A With Trade Historian Douglas A. Irwin," AEI Ideas

2. "A Christmas Carol in Prose; Being a Ghost Story of Christmas," by Charles Dickens, 1843