When misused or weaponized tariffs become an economic poison. Learn from history
By Ya Libnan
Tariffs, if handled diplomatically and temporarily, can be effective tools to reset unfair trade dynamics. But when misused or weaponized, they become economic poison, and history has shown us what happens when nations shield themselves from global competition under the illusion of strength.
The idea that tariffs could help local industries sounds appealing, especially in an election year. It gives the illusion of economic patriotism — of standing up for American jobs. But the long-term damage far outweighs the short-term applause.
As Warren Buffett wisely said, “Tariffs are a tax on products that the tooth fairy won’t be paying.” In other words, American consumers foot the bill , not foreign governments, not overseas companies. Worse, he warned just this past Saturday that “trade should not be used as a weapon.” Yet that is exactly what’s being proposed — turning trade from a bridge into a battering ram.
Take the recently floated idea of imposing a 100% tariff on foreign-made movies. This is not just bad economics — it’s self-sabotage. America is the undisputed global leader in entertainment. Hollywood, streaming platforms, and the broader film industry thrive not only by creating content but by engaging with global markets. Retaliatory tariffs will shrink the audience for American films, drive up production costs, and close off the very markets we depend on. In trying to punish others, we punish ourselves.
More broadly, protectionism encourages complacency. If American companies are guaranteed a market, regardless of product quality or innovation, what incentive do they have to evolve? This is the real danger. We risk breeding mediocrity. This is, in part, what caused the economic collapse of the Soviet Union — a state-run economy with no competition, no innovation, and no urgency to improve.
Is that where America is heading?
It’s not too late to steer away from that path. True economic strength comes from competing and winning, not from hiding behind walls. Our companies, our workers, and our institutions are most successful when they are challenged, not coddled.
Trade should be fair — no doubt about that. But let us not pretend that tariffs are a silver bullet. Used carelessly, they become a ticking time bomb for our economy, our global standing, and our own working families.