'A Beautiful Word': Why Trump Insists On Tariffs As Essential In His Bid To Save American Manufacturing

Donald Trump remains unwavering in his devotion to tariffs, describing them as "a beautiful word" that protects American industry.

What Happened: In an October 2024 interview with finance expert Dave Ramsey, the former president insisted that imposing duties on foreign goods can "save our country," despite ongoing debates over economic repercussions.

Trump argues that tariffs level the playing field for small businesses. Responding to Ramsey's concern about government interference, Trump insisted that a targeted approach prevents American companies from being undercut by nations like China. He warned that without tariffs, large exporters can flood the U.S. market with cheap products, force local businesses to shutter, then buy those businesses cheaply before raising prices.

For Trump, history is proof that tariffs work. He cited the 1890s — a period he said made America "the richest point in its history" — when revenue from these import taxes funded the government, even prompting a special committee to decide how to spend the surplus. By contrast, Trump noted that an income tax system eventually replaced what he saw as a more direct way to defend U.S. jobs and manufacturing.

That said, according to a MarketWatch report, historians assert that while the U.S. ascended economically from 1870 to 1913, it was not at its wealthiest, and tariffs did not drive that growth. They emphasize that innovation, education, and immigration, rather than protectionist policies, powered America’s rise. Experts note that life remained harder for ordinary citizens, as there were no modern safety nets or worker protections.

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Trump also pointed to success in the steel industry, where he believes levies on imported steel stopped unfair dumping. Without such measures, he claims, foreign governments would "steal our factories, our workers, and our jobs." This emphasis on fortifying small businesses aligns with Ramsey's own belief that entrepreneurs drive the American economy.

Why It Matters: Dave Ramsey and his co-host Ken Coleman, in a more recent conversation, emphasize that tariffs inevitably raise consumer prices, and they caution that businesses will pass these costs along rather than absorb them. In their discussion, Ramsey downplays the potential fallout by highlighting the existing trade taxes Mexico and other countries impose on U.S. exports.

He believes these measures act more like negotiating tactics than doomsday policies and encourages people not to panic, arguing that debt-free households worry far less about inflation than those relying on credit.

Critics challenge Ramsey's explanations, particularly his claim that Mexico charges a 33% tariff on American goods. Observers point out that he likely confused Mexico's 16% value-added tax (VAT) with tariffs, which remain more targeted and often apply to countries lacking free trade agreements. Viewers also question his anecdote about a friend building a house in Cabo, arguing that his experience with taxes on appliances does not reflect the reality most consumers face.

Audience members accuse Ramsey of being out of touch with average Americans, citing his reliance on personal stories that involve wealthy acquaintances. Despite these criticisms, Ramsey's central message remains consistent: tariffs will raise prices for consumers, and they serve as a method of pushing trading partners to negotiate terms that favor American businesses.

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