China's retaliatory tariffs show how export-dependent industries are harmed by protectionist policies. Even if other countries refrain from imposing retaliatory tariffs, exporters can still suffer from reduced demand for their products in countries targeted by US tariffs. Businesses that rely on imported materials to manufacture their products also suffer from increased production costs thanks to tariffs. President Trump acknowledged how tariffs harm US manufacturers when he granted US automakers' request for a one-month delay in new tariffs on imports from Mexico and Canada.

Many American consumers who are struggling with high prices are concerned that President Trump's tariff policy will further increase prices. They are right to be concerned. Contrary to popular belief, foreign businesses do not pay tariffs. Tariffs are paid by US businesses that wish to sell the imported goods. When tariffs are increased, the importing businesses try to recoup their increased costs by increasing their prices. Consumers then must choose whether to pay the higher price, find a cheaper alternative, or do without the product. Whatever they choose, consumers will be worse off because they cannot spend their money the way they prefer.

Tariffs may provide a short-term benefit to the protected businesses. However, tariffs could keep businesses alive that should be allowed to fail so the business owners and workers can put their talents to use in other endeavors that would more greatly benefit and the whole economy.

Defenders of tariffs, including President Trump, claim the revenue from tariffs can be used to "offset" the revenue government loses from tax cuts. Some even claim that tariffs can generate enough revenue to allow the government to repeal the income tax. The problem with this is that a tariff brings in more revenue to "pay for" tax cuts only to the extent the tariff does not cause consumers to cease buying imported goods. Thus, the tariffs, to bring revenue to the government, must not be large enough to discourage Americans from buying foreign products. The more tariffs increase government revenue, the more they will tend to fail in bringing about another often promoted tariff goal — an increase in the purchase of domestic goods.