Yeah, No! Taaarifs, Tar-rifts, or Tariffs? 😵‍💫

Imagine that today, a U.S. manufacturer imported a steel coil from Canada. The price was $1,000 - just like it was last month. But this time, a newly reinstated 25% tariff on imported steel had taken effect. The result? An extra $250 was added to the importer's bill—not paid by Canada or the Canadian exporter, but by the U.S. company. That $250 goes straight to the U.S. government and becomes one more cost the importer must absorb, pass to customers, or factor into the final price of a product.

The United States has recently threatened, imposed, suspended, and repeated that policy cycle of a return to a flat 25% tariff on all imported steel and aluminum, scrapping previously negotiated exemptions for allies and raising the aluminum rate from 10%. (Yep, these tariffs aren't new; they have been bouncing around for years, with various carve-outs, temporary deals, and trade detours.) Supporters claim these tariffs help bring back American jobs and protect critical industries. But what's often left out of the conversation is who actually pays for this policy - and who really benefits.

It's easy to assume the U.S. no longer produces steel or aluminum, thinking those industries were offshored years ago. But that's not the whole picture. U.S. Steel, founded in 1901, still operates in Gary, Indiana. Century Aluminum runs smelters in Kentucky and South Carolina. ATI, Howmet Aerospace, Ulbrich Stainless, and Rolled Alloys manufacture specialty metals for defense, energy, and aviation - right here in the U.S.

These are the companies tariffs aim to support. Steel jobs shift to the left on the demand curve (left economically, which is a good thing, not politically, no comment here) in these factory towns, and local economies see a short-term boost. And we should celebrate that. But those wins come with a cost quietly paid by other parts of the economy and, ultimately, by all of us as consumers.

A tariff is a tax on imports, and contrary to popular belief, exporters and producers don't pay it. (It only seems that way because those stakeholders often react strongly—because demand has dropped, not because their prices have increased. They can still sell the same steel to another country or trade partner.) We've digressed; the tariff is paid by the U.S. business importing the goods.

When those companies face higher input costs, the ripple effects move quickly. Manufacturers absorb some of the pain, but much of it gets passed along—to wholesalers, retailers, and finally to the person buying a car, a fridge, or a can of soup.

A 2021 study by the Peterson Institute for International Economics found that U.S. businesses and consumers bore more than 90% of the cost of metal tariffs—not the exporting nations. Tariffs don't just reshuffle the economy; they raise prices and shift burdens onto the workers and families they're supposed to help.

There are clear winners. Domestic producers benefit. Some steelworker unions see jobs stabilized or returned. Politicians who champion economic nationalism get to point to a symbolic victory.

But there are far more losers. Small and mid-sized manufacturers often rely on imported metal that is not produced domestically or available at scale. Construction firms, packaging companies, auto manufacturers, and food producers all face increased costs that affect hiring, wages, and investment.

Then there's us - the consumer. Every hidden cost adds up. A tariff on imported steel or aluminum may feel abstract, but it can quietly drive prices higher this year than last.

To be sure, there are good-faith arguments for tariffs. Supporters emphasize national security, domestic capacity, and economic self-reliance. And they're right—a nation shouldn't depend entirely on foreign steel during a crisis. There's real value in strengthening U.S. industry and protecting strategic supply chains.

But protectionism can be a blunt tool. If we want a resilient economy, we need creative trade agreements, investments in innovation, workforce development, and domestic production capacity—not blanket tariffs that hit allies and trading partners just as hard as rivals. Tariffs also risk escalation. After the 2018 steel tariffs, U.S. agricultural exports were hit with retaliatory measures from countries like China, Canada, and the European Union. Trade wars are ugly.

Trade policy should be guided by clarity—who benefits, who bears the cost, and how to build a stronger future. Tariffs may look like a win for American industry. But in practice, they're often just a hidden tax on U.S. businesses and consumers—one that helps a few, at the same time, quietly costing the rest. And in public policy, that's just not a good trade.