The Supreme Court’s ruling on the International Emergency Economic Powers Act may not be the end of the controversy surrounding President Trump’s global tariffs. The tariffs, aimed at reinvigorating domestic manufacturing in the US, will likely lead to economic uncertainty and higher costs for consumers.
While the tariffs claim to boost domestic production, they are not limited to products that can be easily reshored. Agricultural products, such as coffee, spices, and black pepper, are also targeted, despite being difficult or impossible to produce domestically. The impact on these industries is significant, with imports from countries like Vietnam and Indonesia facing substantial tariffs.
Coffee, for instance, is a prime example of the tariffs’ effect. The US consumes 1.62 billion pounds of coffee annually, but domestic production can only meet about 1% of this demand. Tariffs would increase the cost of coffee for consumers by $820 million, regardless of their origin.
Spices, including cinnamon and black pepper, face similar challenges. These essential commodities are grown primarily in tropical regions, making it impossible for the US to produce them domestically. The tariffs would lead to higher costs for consumers, with imports from Vietnam and Indonesia facing significant tariffs.
The reshoring argument is flawed, as companies like Apple can create high-paying jobs without forcing domestic production on industries that cannot be easily reshored. In fact, leveraging global trade enables companies to invest in creating higher-valued jobs in the US.
President Trump’s focus on physical manufacturing rather than job creation is puzzling. The example of iPhone assembly highlights this issue, as the President demands Apple produce iPhones domestically despite creating low-paying jobs in assembly. This approach would harm the company and risk growth in higher-paying jobs.
The US already produces a significant amount of manufacturing, with $2.4 trillion in output in 2024. However, tariffs will not shift production back to the US; they will increase costs for consumers and put higher-paying jobs at risk. As the Supreme Court’s ruling may not be the end of the tariff controversy, it is essential to consider the economic implications of these policies.
Source: https://www.forbes.com/sites/waynewinegarden/2025/06/03/tariffs-either-cant-wont-or-shouldnt-re-shore-manufacturing-jobs