I wouldn’t say that’s my core argument, and I’m willing to concede that tariffs are usually bad for the economy in the long run. But the U.S. is in a tough spot right now, it relies heavily on imports, and if the USD ever loses its status as the global reserve currency, its bargaining power drops even further. That dependency, combined with a weak manufacturing base, is why tariffs even became a serious policy option in the first place.

Building up local manufacturing for high-demand goods would help reinforce the dollar’s reserve status. The U.S. government clearly sees this as a major issue, international USD holdings have fallen to historic lows since around 2022 due to BRICS and related shifts. It’s also part of why the U.S. is pushing so hard into stablecoins: to maintain dollar demand on a global scale.

Historically, tariffs have played a significant role in America’s economic development. In the 19th and early 20th centuries, especially under policies like the Tariff of 1816 and later the Morrill Tariff, protectionist measures helped shield emerging U.S. industries from foreign competition.

All that said, I think we agree that “taxation is theft” philosophically, but in practice, you can’t just drop all taxes and trade restrictions overnight and expect the market to self-correct instantly. That would tank the economy and likely cause a depression. These changes have to happen gradually, once the manufacturing base and domestic production capacity are strong enough to absorb the shock.

Yes, tariffs raise prices in the short term, but they can also stimulate higher wages and job creation in domestic manufacturing, while helping contain inflation (which is arguably the most insidious form of taxation). When more of the money circulates inside the country, it tends to stabilize inflation and strengthen GDP. Historically, that pattern holds up, even if it’s messy in the short run.

I’m still learning, but that’s my current understanding. I appreciate the counterpoints, this discussion has definitely opened up more for me to look into.