The political game behind Trumps tariffs
The administration’s decision to give certain companies a break is a tacit admission that tariffs can hurt American competitiveness, especially in high-tech industries like artificial intelligence
US President Donald Trump's tariffs were sold as a way to help American workers by taxing foreign goods. However, the recent exemptions on electronics like smartphones, laptops, and computer parts show that these tariffs may not be about protecting American jobs, but more about politics.
In an opinion piece published yesterday (12 April), The Wall Street Journal's Editorial Board opined that even though the tariffs were sold to American workers as a way of taxing foreign goods, the recent exemptions on electronics like smartphones, laptops, and computer parts show that these tariffs are more about politics.
US Customs and Border Protection issued a notice on 11 April that electronic products would be excluded from tariffs on goods from China. These exceptions apply to about $385 billion worth of imports in 2024, including $100 billion from China.
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While this is good news for consumers, it mostly benefits large well-connected tech companies like Apple, Dell, Nvidia, and HP. These companies can now avoid the high costs of tariffs, while many smaller businesses and other industries still have to pay.
The process for getting an exemption is unclear, which makes it harder for smaller companies without political connections to compete.
These actions reveal that the costs of tariffs are not mostly paid by foreign companies, as some officials claimed, since if that were true, there would be no need for exemptions, read the opinion.
The administration's decision to give certain companies a break is a tacit admission that tariffs can hurt American competitiveness, especially in high-tech industries like artificial intelligence.
Trump's use of tariffs as a response to a so-called national emergency is also questionable. If electronics are not an emergency, but umbrellas are, then the logic behind the tariffs seems weak. This could even lead to legal challenges from business groups.
Thus, the arbitrary nature of Trump's tariff policy reveals itself as more political than practical. Big companies with influence may get help, while smaller ones are left behind.
The idea of protecting American workers becomes less about fairness and more about who has the most power, money and influence in Washington.
