America loves to tax. We put taxes on everything, from beef jerky to bras — and, as the Beatles said, “Should 5% appear too small, be thankful we don’t take it all.”
Though it seems the stability of our economy ebbs and flows depending on who occupies the Oval Office, few presidents have looked past monetary mechanisms and fiscal policy to unearth a more archaic tool: the mighty tariff.
Now a distinct marker of President Donald Trump's first 100 days in office, the economic term is touched on more than the Bull Gator outside of Ben Hill Griffin Stadium during spring graduation. But few recognize its significance beyond a political maneuver.
Tariffs on foreign trade partners make it more expensive for Americans to buy non-domestic products. The average effective tariff rate will rise to 12%, as some estimate imports will fall by over $500 billion in 2025, or over 15%, according to the Tax Foundation.
This brings me to some bad news: no more Barbies.
Brands loved by American consumers, in lieu of maintaining sacrosanct profit margins, will soon begin to pass the costs of these tariffs onto us. Mattel, Target, Walmart — and yes, your most celebrated SHEIN and Temu shops — could all face financial armageddon, according to a recent CNN article.
The 2025 tariffs will disproportionately affect the prices of textile and clothing products, with consumers experiencing 64% higher apparel prices in the short run, according to The Budget Lab.
The SHEIN bathing suits we talked about have nearly doubled in price. A bathing suit set that cost $4.39 on April 24 shot up to $8.39, a 91% increase within 24 hours, according to CNN. That same bathing suit is $12.36 today — oh, the shock and horror.
What should really terrify you is how the U.S. economy became so dependent on other countries for our most basic manufacturing needs. What most don’t understand is that China pegs its currency, the yuan, keeping it artificially low to incentivize exports to other countries.
This has made our Eastern trade partners a manufacturing marvel. China grew its exports of manufactured goods more than 25-fold over the last two decades, and it is responsible for nearly 20% of global manufacturing, according to the Center for Strategic & International Studies.
The U.S. imported $438.9 billion worth of goods from China in 2024, representing 13.4% of all U.S. goods imports and the largest foreign supplier of goods to our nation.
This exposure, defined as how much America is connected to Chinese economic activity, is simply too risky to maintain. The United States’ increased dependence on a foreign entity is a security disaster and a major financial dilemma. This is why adding or raising tariffs could metaphorically hit two birds with one stone.
One, it could cleave us from China’s manufacturing sector, and two, it could start solving the amassing trade deficit, which is caused primarily by problem No. 1.
Excluding Canada and Mexico, Trump’s reciprocal baseline tariffs will raise over $700 billion dollars in revenue for the U.S. over the next decade; additional tariffs would create nearly $2 trillion in revenue during the same time span.
By taxing consumption to finance production, these tariffs would reallocate nearly $1 trillion to domestic pursuits, and as a result, produce an increase in GDP, higher employment, better wages and reduce our burgeoning national debt.
What is portrayed in the news as reckless foreign policy by the Trump administration is actually a measured response to the decisive political question of the 21st century: In a world defined by scarcity, where will abundance emerge, and who will direct the global economy?
While tariffs initially produced a contraction in GDP, we must look at employment, consumer spending, business confidence, wage expression, home sales, manufacturing demand and CPI indicators to make a more informed economic decision.
And in true John F. Kennedy fashion, ask not what America can do for your wallet, but what your wallet can do for America.
Lily Haak is a UF economics senior.
