Solving the tariff problem

Over at National Review, I summarize my recent paper making three arguments against tariffs. These are the knowledge problem, the incentive problem, and the impossibility problem.

The knowledge problem is that economies are too complicated for policymakers to plan. The incentive problem is that even good policies rarely make it through the political process intact. The impossibility problem is rooted in tradeoffs. When different policy goals contradict each other, policymakers must choose which to pursue, and which to abandon.

Pointing out problems with tariffs is not enough. I also offer solutions, such as repealing abused statute sections:

Section 338 of the infamous 1930 Smoot-Hawley tariff bill is still in effect, and the Trump administration could use it to enact tariffs of up to 50 percent. Congress can save families thousands of dollars on cars and housing by repealing Section 232 of the 1962 Trade Expansion Act… Trump’s China tariffs depend on Section 301 of the 1974 Trade Act. Tariffs on solar panels and quartz cite Section 201 of the same bill. Congress should repeal those sections, too.

The No Taxation Without Representation Act, sponsored by Senator Rand Paul (R., Ky.), would put the brakes on presidential tariff-making by requiring Congress to hold votes on all new tariffs.

It is not enough to lower tariff rates. Congress should make it so that no future president can play games with tariffs like Trump has.

Read the National Review piece here. The “Three Reasons Tariffs Don’t Work” paper is here. A short one-minute video version is here.