Tariffs often evoke intense political debate, but their role in economic diplomacy is crucial. Tariffs are not taxes, as some would have you believe. Instead, they are tools designed to promote fair trade and protect national interests. While not universally effective, tariffs can provide leverage in trade relationships, particularly with neighboring countries like Mexico and Canada.

Under the North American Free Trade Agreement (NAFTA), tariffs between these nations were largely eliminated. However, this led to a significant shift in U.S. manufacturing to Mexico, where labor was cheaper, and regulations were less stringent. The result? A weakened American industrial base and an outsized reliance by Mexico and Canada on U.S. consumption.

Currently, 80% of Mexico’s exports and 75% of Canada’s exports are purchased by the United States. This dependency underscores why tariffs can be a powerful economic tool. If the U.S. imposes tariffs, these nations face severe economic repercussions, as their economies are heavily tied to American purchasing power.

Moreover, retaliatory tariffs from these nations would have limited impact on the U.S. economy, as only 15% of American exports are sold to Mexico and Canada combined. The U.S. also holds strategic advantages in sectors like technology, pharmaceuticals, and refined oil—essential goods that are difficult for other nations to source elsewhere.

In contrast, raising income taxes domestically, as some political figures advocate, directly impacts American families and businesses, reducing disposable income and stifling economic growth. Unlike tariffs, which target foreign trade practices, income taxes burden the American taxpayer without providing a mechanism for economic diplomacy.

Economic security is national security. Tariffs can be an effective means of safeguarding jobs and ensuring that trade relationships remain balanced and fair. As debates continue, it is essential to understand the strategic value of these measures in maintaining America’s economic strength.