Tariffs are the subject of discussion in 2025. Tariffs are not new, but are they good or are they bad?

A tariff is defined as a tax or duty to be paid on a particular class of imports or exports. Tariffs are a tool to regulate foreign trade and protect domestic industries. Countries throughout the world use tariffs; however, only recently have tariffs become regular topics of conversation.

According to “Understanding Tariffs: What They Are and How They Work” on Better American Media on Feb. 7, governments impose tariffs to:

• Protect local businesses by making imports costlier to encourage domestic sales.
• Raise revenue as tariffs contribute to government funds.
• Negotiate trade deals, using tariffs as a bargaining tool.
• Retaliate to counter unfair trade practices.

The history of tariffs dates back to British trade policy toward the American colonies. Britain wanted to gain funds from all colonial trade. According to historian and policy advisor Bruce Barlett, writing on July 1, 1998, “The Truth About Trade in History,” Britain passed the Navigation Acts to regulate trade and to build wealth. These policies were a burden on the colonies and eventually led to the American Revolution.

Soon after the colonies won freedom, Alexander Hamilton began to advocate for import restrictions, the same protectionist policies America had rebelled against. Hamilton’s position was based on his perceived need to protect infant industries.

Congress did adopt its first tariff in 1789, for the purpose of raising revenue. Mr. Barlett’s research showed tariffs continued to be adopted, lowered and then expanded until 1857 when the tariffs’ rates became more stable.

In the March 4 Epoch Times, Bruce Pardy wrote “In Some Scenarios, Tariffs Actually Make Sense.” He acknowledged tariffs are taxes, and taxes are bad. He continued to point out the negative aspects of enacting tariffs. Tariffs tax your own people when they buy foreign goods. Tariffs raise prices and increase inflation. They impede transactions that benefit both sides. Countries are better off without trade impediments. Ideally there would be zero tariffs.

“Circumstances are rarely ideal. If you value free trade and economic competition, sometimes tariffs are the best choice,” said Pardy, a law professor at Queen’s University.

The Trump administration is promising to level the trade playing field by charging a reciprocal tariff on any country placing a tariff on the United States. If a country complains the tariff is too high, the country can mitigate the situation by reducing or eliminating the tariffs on the U.S. In a free-trade market, the rules need to be the same for everyone. Tariffs can be a bargaining tool.

A top priority for the Trump administration is to stop the importation of the deadly drug fentanyl across the southern border with Mexico and the northern border with Canada. The tariffs are used to retaliate for this scourge on the American populace. The tariff will be used as leverage to secure help from these two countries in stopping the inflow of fentanyl being smuggled across their borders. President Trump, in his speech to a joint session of Congress on March 4, emphasized the tariffs are meant to force Mexico and Canada to step up and stop the flow of fentanyl. When these goals are met, the tariffs will be reduced or removed.

“There are no winners in a trade war, and new tariffs are bad news for all of us trying to make ends meet,” home economist Catriona Redmond wrote in the article “What are Tariffs and How Do They Affect My Pocket?” appearing in the Feb. 18 Irish Examiner. Having said that, she went on to write that sometimes it is necessary as a way to encourage fair-trade practices or as a retaliation tool in a trade dispute. Tariffs are used as leverage for policy changes with other countries.

Government solutions rarely solve any problem without unintended consequences. Enacting tariffs is no different. Any new tax will affect citizens’ pocketbooks. Unfair trade practices also negatively affect the economy. There is no panacea. There are risks attached to the decision: to tariff or not to tariff.

Tariffs shape global trade, impact businesses and increase costs to consumers. Tariffs can generate revenue, protect industries and coerce actions from other countries. If the tariffs work to stop the flow of fentanyl and global trading becomes fair, Americans will be the winners.