By Ann Skeet and Adina Ardelean, Experts Weigh In On Trump’s Trade Policy.
Tariff policies under the Trump administration have sparked debate about their fairness and impact on American households. Critics argue that these tariffs are regressive taxes, favoring wealthy individuals over lower-income families.
Experts from Santa Clara University’s Markkula Center for Applied Ethics suggest that blanket tariffs may be unethical due to their inequities. They propose a more targeted approach, focusing on industries vital to national security or those with an infant industry crucial to the economy’s future growth. This policy could minimize negative impacts on vulnerable groups and developing countries.
Additionally, experts stress the importance of transparency, advance notice, and consistent application in tariff policies to avoid uncertainty for businesses and consumers. The full effects of these tariffs are yet to be seen, but their impact on lower-income households is already being felt.
While some argue that tariffs can boost domestic production and reduce trade deficits, others contend that these goals are contradictory and may not be the best approach. Ultimately, an ethical trade policy should prioritize fairness, transparency, and consideration for all stakeholders involved.
As the 90-day pause on tariffs approaches its expiration, investors and policymakers are watching closely to see if it will be extended or imposed. The fate of Trump’s tariff policies and their impact on American consumers remains uncertain, but one thing is clear: a more nuanced approach is needed to address trade imbalances and promote economic growth that benefits all segments of society.
Source: https://www.morningstar.com/news/marketwatch/20250705194/trumps-tariffs-are-unfair-to-most-americans-heres-how-they-could-actually-be-beneficial