Tariffs are an additional tax paid by importers and consumers for products manufactured abroad. Tariffs can reduce or restrict trade.
A 10 percent tariff means a company in the United States pays an extra $1 tax for every $10 worth of product it brings into the country. The higher the tariff, the higher the tax. Since April, the Trump Administration has announced a series of new tariffs, many of which go into effect today, with the goal of encouraging domestic investments.
Our manufacturing industry, which depends on a global supply chain, is already feeling the effects of these tariffs. Data from the Department of Labor shows that 14,000 manufacturing jobs have been lost since President Trump first announced tariffs, and some factories could be forced to close. Not exactly the great American manufacturing revival President Trump promised.
Prices have also increased for three straight months as businesses pass the extra costs onto consumers. At a time when Americans are already struggling with inflation and the sky-high cost of living, President Trump has said he "couldn't care less" if companies raised prices.
In San Diego, tariffs threaten our ability to work with Mexico to address cross-border sewage and the efficient flow of traffic through our ports of entry. Our life sciences industry - a huge economic driver in San Diego - is bracing for how tariffs will slow down supply chains, raise costs, and burden their manufacturing strategies. This is all on top of today's jobs report showed that job growth has slowed dramatically and unemployment is rising.
The details of the trade deals that the Trump Administration provides are often vague and sometimes contradict what other countries say or are even capable of doing. This might explain why President Trump hasn't presented any new trade deal to Congress for our review. The Constitution gives Congress the power to ratify treaties (Congress ratified the USMCA).
But now, President Trump is blowing up his own USMCA trade deal and raising costs on everything from cars to food to household goods. He has reinstated tariffs on products from Mexico and Canada, even those assembled with components made in America. He has imposed a 50 percent tariff on Brazil, even framing it as retaliation over the prosecution of his ally, former Brazilian President Jair Bolsonaro.
So, why should you care about President Trump’s actions on tariffs? Because his “deals” have created economic chaos, caused prices to rise for American consumers, and weakened our standing on the global stage. I’ll keep speaking out against any policy that hurts San Diegans and people across the country.