Tariffs Can Work—but Not Stupid Ones

Tariffs and interventionist trade policy have had their place in the building of the American economy. You can look it up! But to say that they have paid off in particular times and places is different from saying that they’re generally a good idea. Like other inherently damaging steps, from invasive surgery to blowing up decrepit buildings, they are justified only when the alternative is worse.

Tariffs are good or bad, useful or pointless, depending on the balance of disruption they cause versus benefits they bring. By that standard, Donald Trump’s new steel and aluminum tariffs against Mexico, Canada, and the European Union are both pointless and bad.

What’s the modern case for tariffs? For the moment let’s not get bogged down in the “infant industry” argument—the idea that certain businesses or technologies can grow into robust commercial successes, if