Shipping containers at Pier J at the Port of Long Beach wait for processing in Long Beach, California, U.S., April 4, 2018. REUTERS/Bob Riha Jr./File Photo
Americans Skeptical of Tariffs Amid Trump’s Plans for Trade Overhaul
Public Sentiment on Tariffs
A recent Reuters/Ipsos poll indicates that Americans remain skeptical of the benefits of tariffs, with many concerned about their impact on prices and uncertain about their effectiveness in supporting U.S. workers. The six-day survey, which concluded Tuesday, revealed that only 29% of respondents supported higher tariffs on imported goods if they resulted in increased prices, while 42% opposed the idea. A significant 26% were undecided, highlighting the public’s ambivalence toward such policies.
When asked whether tariffs would benefit them personally, just 17% of respondents agreed, reflecting widespread doubt about the direct advantages of these measures.
Trump’s Aggressive Tariff Plans
President-elect Donald Trump, who returns to the White House on January 20, has proposed an ambitious tariff strategy. His plans include a universal 10% import tariff and a 60% tariff on Chinese goods, along with additional duties targeting imports from Mexico and Canada. Trump has positioned these measures as part of his broader goals to boost American industry, curb illegal immigration, and pressure China to address fentanyl production.
Economists warn that such sweeping tariffs could lead to significant price increases for U.S. consumers, given that approximately 10% of consumer spending is tied to imports, according to the Federal Reserve Bank of San Francisco.
Potential Economic and Political Risks
Trade economists, such as Mary Lovely of the Peterson Institute for International Economics, have suggested that public opposition to tariffs may act as a constraint on Trump’s more extreme proposals. “Clearly, they will show up in prices,” Lovely noted, underscoring the potential for inflationary effects similar to those that contributed to Democratic President Joe Biden’s political struggles.
Trump’s previous tariff policies during his first term targeted $370 billion worth of Chinese goods with levies of 7.5% to 25%. While these measures avoided major consumer categories like electronics, the new plans are broader in scope and could lead to retaliatory actions from key trading partners.
International Reactions
The prospect of higher tariffs has already elicited responses from major U.S. trading partners:
- China: Reports suggest Chinese leaders are considering devaluing the yuan to offset the impact of increased tariffs, making their exports cheaper in dollar terms.
- Mexico: President Claudia Sheinbaum has hinted at retaliatory tariffs, warning of a potential tit-for-tat trade conflict.
- Canada: Some Canadian leaders have proposed halting energy exports to the U.S. or leveraging critical mineral supplies in response to Trump’s tariff plans.
Shifting Attitudes Toward Trade
Public attitudes toward international trade appear less negative than during Trump’s first term. The poll found that 48% of Americans agreed that trade hurts average workers by leading to job losses, a notable decline from 64% in 2018. This shift may complicate Trump’s efforts to justify tariffs as a means of protecting U.S. jobs.
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