Why Tariffs on Mexico, Canada, and China Are Good for America

MARCH 4, BY ARCH KENNEDY

Why Tariffs and the U.S. Economy Are Connected

Tariffs and the U.S. economy are deeply connected. For decades, the United States has relied on cheap imports from China, Mexico, and Canada. However, recent tariffs have reshaped industries, impacting jobs, national security, and economic stability.

While critics argue tariffs increase prices, the reality is that tariffs help rebuild American manufacturing, create jobs, and reduce dependence on foreign nations—especially China. They also enhance national security, correct unfair trade practices, and strengthen the U.S. economy in the long run.

What Are Tariffs?

A tariff is a tax on imported goods. When a country imposes tariffs, it makes foreign products more expensive, encouraging consumers and businesses to buy American-made products instead.

Currently, the Trump administration has implemented tariffs on Canadian, Mexican, and Chinese imports to level the playing field and strengthen domestic industries.

1. How Tariffs Strengthen the U.S. Economy and Job Growth

For decades, companies outsourced American jobs to Mexico and China to cut costs. The result? Factories closed, wages stagnated, and millions of American jobs disappeared.

Tariffs reverse this trend by making foreign-made products more expensive than U.S.-made goods, forcing companies to:

Move manufacturing back to the U.S.

Hire more American workers

Pay better wages

According to the U.S. Bureau of Labor Statistics, manufacturing jobs pay 20% more on average than retail or service industry jobs. That means tariffs don’t just create jobs—they create high-quality, middle-class jobs.

Case Study: The Impact of Tariffs on the Steel Industry

The 2018 steel tariffs under the Trump administration led to a resurgence in U.S. steel production. Companies like U.S. Steel and Nucor expanded their operations, rehiring thousands of American workers. This demonstrates how tariffs can revive struggling industries and create economic opportunities for Americans.

2. Tariffs Reduce U.S. Dependence on China & Mexico

Right now, the U.S. relies too heavily on China, Mexico, and Canada for essential goods.

The dangers of foreign dependence:

• China dominates key industries (electronics, pharmaceuticals, and raw materials).
• Mexico undercuts U.S. wages by offering cheap labor.
• A global crisis (COVID-19) exposed weak supply chains, leaving America vulnerable.

How Tariffs Help Reduce Dependence

Tariffs force U.S. businesses to:

Buy from American suppliers

Diversify their supply chains

Invest in long-term domestic production

Example: The Semiconductor Industry

During the COVID-19 pandemic, a semiconductor shortage crippled industries ranging from automobiles to smartphones. The U.S. relied on Taiwan and China for chip production, exposing the dangers of supply chain dependency. As a result, new tariffs and incentives for domestic production have encouraged companies like Intel and TSMC to build semiconductor plants in the U.S.

This shift means that America will never again be at the mercy of foreign governments for critical goods.

3. How Tariffs Protect National Security and the U.S. Economy

A strong economy equals a strong national defense.

Why Foreign Dependence is a National Security Risk

China controls key resources – Rare earth minerals (used in military tech) are 80% controlled by China.

Supply chains could be weaponized – In a geopolitical crisis, China or Mexico could cut off essential goods.

America needs a strong industrial base – The U.S. can’t defend itself if it depends on foreign production.

How Tariffs Improve National Security

Encourages domestic production of military & tech supplies

Creates economic resilience in case of war or crises

Reduces foreign influence over the U.S. economy

Example: The Energy Sector

Dependence on foreign oil has long been a national security concern. With tariffs and incentives for domestic energy production, the U.S. has increased energy independence, reducing its reliance on oil-rich countries that may have adversarial interests.

4. How Tariffs Promote Fair Trade and Stop Unfair Practices

Countries like China and Mexico don’t play fair.

• China manipulates its currency to make exports artificially cheap.
• China steals American intellectual property, costing the U.S. billions.
• Mexico’s low wages make it impossible for American businesses to compete fairly.

Tariffs correct these imbalances by ensuring that foreign goods aren’t artificially cheaper due to unfair government policies.

Case Study: The Solar Panel Industry

China heavily subsidized its solar panel industry, making it nearly impossible for American manufacturers to compete. Tariffs helped level the playing field, allowing U.S. companies to expand and develop domestic solar technology.

5. Tariffs Strengthen the U.S. Economy in the Long Run

The biggest argument against tariffs is that they increase prices.

Short-Term Pain, Long-Term Gain

Yes, some prices will rise in the short term, but consider these long-term benefits:

More American jobs = higher wages = stronger economy.

Less reliance on foreign supply chains = economic stability.

Lower trade deficit = more money stays in the U.S.

Economic Data on Tariff Benefits

• Manufacturing job growth: Since the implementation of key tariffs, U.S. manufacturing jobs have increased by over 500,000 in key industries.
• GDP growth: Countries that prioritize local industries tend to have more stable and self-sustaining economies.

Would you rather pay slightly more now or allow China and Mexico to dictate U.S. economic policy?

The Verdict: Why Tariffs and the U.S. Economy Are Linked

The short-term pain of tariffs is worth the long-term gain.

Tariffs create American jobs.

Tariffs make the U.S. economy stronger.

Tariffs reduce our dependence on China.

Tariffs protect national security.

Tariffs ensure fair trade practices.

The next time you see a “Made in the USA” label, know that you’re contributing to a stronger, independent America.

What do you think about tariffs? Are they good for America? Let us know in the comments!