History shows that tariffs to revive U.S. manufacturing, reclaim jobs and counter allegedly unfair trade practices rarely succeed. In today's interconnected world, they're more likely to provoke painful retaliation.
Supporters of tariffs often argue that they protect domestic industries and create jobs. In theory, they might. But in practice, recent history shows they are more likely to invite retaliation, raise prices and disrupt supply chains. Photo by Antoni Shkraba Studio/ Pexels Feeling tariff whiplash? You're not alone. On April 2, President Donald Trump announced sweeping new tariffs -- a 10% levy on nearly all U.S. imports, along with targeted duties aimed at punishing countries he accuses of exploiting American markets. Just a week later, on Wednesday, his administration abruptly paused much of the plan for 90 days, leaving markets and allies scrambling for clarity. The proposed tariffs were pitched as a way to revive U.S. manufacturing, reclaim jobs and counter what Trump considers unfair trade practices. But they immediately rattled the financial markets and raised alarms among economists and America's global partners. Critics across the political spectrum revived a familiar warning: "beggar-thy-neighbor." History shows that such policies rarely succeed. In today's interconnected world, they're more likely to provoke swift, precise and painful retaliation. What is the 'beggar-thy-neighbor' strategy? The phrase comes from economic history and refers to protectionist measures -- tariffs, import restrictions or currency manipulation -- designed to boost one country's economy at the expense of its trading partners. Think of it like cleaning your yard by dumping the trash into your neighbor's property: It looks tidy on your side until they respond. This approach starkly contrasts with the principles laid out by Adam Smith. In The Wealth of Nations, he argued that trade is not a zero-sum game. Specialization and open markets, he observed, create mutual benefit -- a rising tide that lifts all boats. Trump's tariffs disregard this logic. And history backs Smith. In the 1930s, the U.S. adopted a similar strategy to the one Trump is experimenting with through the…