Thomas Sowell, the renowned economist, has been vocal about the dangers of President Trump’s tariff policies, drawing parallels to historical economic missteps. In a 2018 interview, Sowell called Trump’s trade war an “,” comparing it to the Smoot-Hawley tariffs of 1930 that deepened the Great Depression. He emphasized that tariffs artificially raise prices for American consumers and disrupt broader economic stability, noting that trade imbalances focus narrowly on goods while ignoring lucrative service-sector income.
Sowell’s skepticism is rooted in basic economic principles. He argued that tariffs on imported steel in the 1980s cost in downstream industries (like auto manufacturing) as they saved in the steel sector. Similarly, sugar tariffs led to confectionery companies relocating to Canada and Mexico to avoid higher costs. These patterns, Sowell warned, repeat the mistakes of protectionist policies that prioritize short-term political gains over long-term economic health.
Despite claims that Trump’s first-term tariffs boosted U.S. steel production and jobs, Sowell’s analysis highlights the hidden costs. For every steel job saved, other industries faced profit losses and layoffs due to inflated material prices. This aligns with his broader critique that tariffs create , with net harm to the overall economy.
The debate continues as Trump proposes new tariffs, with supporters citing reshoring and investment, while critics warn of consumer price hikes and supply-chain disruptions. Sowell’s warnings about the of trade wars—retaliation, market volatility, and economic stagnation—remain a cautionary lens for evaluating these policies.
