January 7, 2026 — When I was an economics major in the late 1960s, I was taught that tariffs, as well as non-tariff barriers, should be avoided as a burden on trade and a tax on the populace. However, because the world has not accepted that teaching and tariffs have become a major defensive tool for advancing the Trump administration’s policy objectives, the conventional wisdom should be reconsidered.
Today, there are over 180 nation-states trying to be competitive on the world markets for goods and services, 35 percent of which are represented by the United States. Consequently, access to our markets is extremely important. U.S. tariffs provide critical, indispensable leverage against unfair foreign trade practices, including tariffs and nontariff barriers to our exports, and unfair penetration of our markets to the detriment of domestic production and jobs. Lessons can be drawn from trade experiences with two of America’s closest allies: Japan and Canada.
Japan, over the last 40 months, has devalued its currency against the U.S. dollar by 50%, from 105 to 155 yen to the dollar. This means that Japan has effectively established the equivalent of a 50% tariff on all international imports.