Free markets, not tariffs, built America’s strength

By Donna King

As tariffs once again take center stage in American trade policy, a growing rift is emerging within the conservative movement — not over the desire for fairness, but over how best to achieve it. While Donald Trump’s appeal united a wide swath of voters across ideological lines, his administration’s embrace of tariffs tests the conservative commitment to free-market economics. The question now is whether the price of protectionism is worth the cost to North Carolina’s economy.

Therein lies the challenge: The Trump administration unites Americans over fundamental fairness, but can divide over core principles of conservatives, like free-market economic policies. We cheered when his DOGE team uncovered waste and abuse by those who took billions from the taxpayers’ well but did little to help their community at large. We cheered when they uncovered false accounts stealing entitlement benefits. As Congress works to codify the results of those audits in statute they stand out as concrete examples of the abuse that millions of American taxpayers felt for years.

However, the cost of tariffs is not theoretical either. The increased cost of goods from tariffs impacts North Carolinians directly, and the rising cost of living is a primary reason 77,284,118 voters cast their ballots for Donald Trump in November. Yes, he has widespread support, and, yes, this is about fairness. But this is also about fairness for business owners and consumers to operate the economy free from the heavy hand of government and global bureaucrats, a policy strategy that made America what it is.

In the center of this edition of the Carolina Journal, you’ll find a map of our great state and the impact of tariffs on industry. While the numbers aren’t set yet, know that decisions are being made today. Businesses must hope for the best and plan for the worst. The uncertainty surrounding tariffs is already stifling growth as industry leaders keep their powder dry. They are not going to invest resources in growth or innovation until they know if they will be paying hefty tariff taxes in the near future.

Upholding free-market principles, even when it is difficult, is how America became the economic superpower we are in the first place. In a globally integrated economy, like North Carolina with our manufacturing, agriculture, and export-dependent industries, we are on the front lines of this policy debate. We stand to lose the most if misguided protectionism takes hold.

Framed as a policy to restore “fairness” in global trade, those who remain fiercely in support of the policy see it as long overdue corrective mechanisms to punish countries for exploiting America’s generosity and prosperity. There is no doubt that the European Union has used its collective strength to push the United States into a trade corner, and the weak leadership of the Biden administration has yielded ground to other nations. Tariffs are seen as a sign of national strength, exercising our hard-earned economic position of power.

It resonates with those who’ve struggled under poor economic policies of the past, suffered job loss to other nations, or see that the European Union benefits from access to the American consumers, but protects its own economy with trade barriers. They are not wrong, but is raising tariffs the answer?

It is easy to say, “Just buy American,” as the solution to bypass increased prices due to tariffs, but tariffs actually function as taxes on consumers and businesses. North Carolina manufacturers who rely on imported raw materials would see production costs rise. “Buy American” will not shield consumers from tariffs in buying a car, for example. The raw materials of industrial goods — the steel, car parts, fabrics, and tires — are likely all subject to the tariffs. Where it is made, or the nationality of the company, is largely irrelevant.

For North Carolina farmers, already squeezed by volatile markets and regulatory uncertainty, they could lose access to vital overseas buyers. North Carolina’s booming ports, our biotech and textile exports — they are not the product of protectionism. They are the result of a market-based approach that rewards entrepreneurship and competition.

The Trump administration is delivering on campaign promises, cleaning up generations of government waste, challenging the progressive status quo in education, and securing the border. This has inspired Trump voters to bide their time over tariffs. However, the damage of tariffs, if a bluff is called, could be a self-inflicted wound that resonates far into 2026 and 2028, jeopardizing the strides made in what is arguably the most impactful policy reforms of any president in modern history.

America’s prosperity has come from embracing open markets and innovation. Competition and free-market policies have delivered decades of prosperity to America by rewarding innovation, lowering costs for consumers, and allowing businesses to compete globally.

Tariffs wouldn’t punish foreign governments — they’d punish North Carolinians.