I hold a dim memory from childhood of an afghan quilt just a little too small for my J.C. Penney “husky boy” body. If I pulled the blanket up to my chin, my feet would stick out. If I covered my feet, my nose would get cold. Only when I balled myself up could I cover my whole self.
Something about this reminds me of economics. You can keep your free trade feet warm or you can use protectionism to heat your turkey wattle, but to do both you have to be strategic.
My new column for the Minnesota Star Tribune is out today, entitled “The wheeling and dealing of American steel.”
Obviously, I’m talking about President Donald Trump’s decision on Monday to add a 25% tariff on imported steel and aluminum. Here on the Iron Range, we’re used to celebrating tariffs. When steel imports cut into domestic iron and steel production, tariffs are a good tool to protect local jobs.
But I’ve also come to see the complicated effects of overusing them. In an economy where everyone is complaining about prices, tariffs risk making the problem worse. Tariffs that come with no commitment to spend the money on technological upgrades to the steel industry, protections for workers, or relief for consumers are just taxes paid by regular folks in the form of price increases.
It’s an issue that requires a nuanced approach, something we should not expect to see anytime soon.
Read more in my Wednesday, Feb. 12, 2025 column in the Minnesota Star Tribune.
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