Donald Trump’s allies have changed their stance on tariffs, now embracing high prices as a necessary component of American prosperity. Treasury Secretary Scott Bessent recently admitted that inflation-weary Americans may face price increases from Trump’s tariffs, but Commerce Secretary Howard Lutnick argues that cheaper domestic goods will make up for it.
The idea that affordable goods and services are the key to the American dream is no longer a tenet held by Republicans. Instead, they’re now saying that access to cheap goods is what drives affordability, not just a necessary component of it. This shift in perspective comes as trade continues to play a crucial role in driving economic growth.
Studies have consistently shown that international trade leads to lower prices, increased variety, and global competition. American households save thousands of dollars per year from these benefits, allowing them to enjoy higher incomes adjusted for inflation. However, Trump’s tariffs will also hurt domestic manufacturing, which is expected to increase production costs.
The real issue isn’t the cost of goods, but rather who bears the burden of those costs. Low-income workers, in particular, struggle with tight budgets and limited leisure time. Democrats used to argue that sacrificing affordable consumer goods would come at a cost to American prosperity, but Trump’s allies now see it as a necessary evil.
It seems the Republican Party has shifted its stance on trade and economic growth. While the idea of high prices as good may not align with traditional notions of American prosperity, it remains to be seen how this new perspective will play out in the long run.
Source: https://www.theatlantic.com/politics/archive/2025/03/trump-tariffs-high-prices/682057