Americans haven’t seen how tariffs take down an economy in almost 100 years. Few people still remember the Great Depression of the 1930s and the severe unemployment caused by massive tariffs on trading partners. Perhaps that’s the reason people haven’t seemed too upset with the tariffs that went into effect at midnight on Canada, Mexico, and China. America first, right?
Not hardly. In fact, the US economy could be damaged more than any of the countries on whom the tariffs were levied. While there are scattered reports of companies shifting production to the US to avoid the tariffs, Mexico, Canada, and China are all prepared to fight. Tariffs have had the effect of increasing nationalistic pride in all three countries, giving people there a ‘fight ’til the end’ attitude. Americans, however, don’t seem to be aware of what’s about to hit them.
Part of the problem lies in the fact that Americans are largely unaware of where their purchases originate. The Associated Press used census data to create the following charts.


All three countries have slapped retaliatory tariffs on US goods, however, which creates hardships for companies who are accustomed to selling outside US borders. China imported almost $3 billion of American wood last year, nearly 2 percent of overall Chinese imports from the United States. Yesterday, one of China’s first actions was to stop most imports of American lumber. Many American farmers also depend on exports of food items such as soybeans and corn. China stopped imports of soybeans and corn is being tariffed. Tariffs hit chicken, wheat, corn and cotton, pork, beef, fruits, and dairy and fish products later this month. The result is a situation where not only are Americans paying more for imported goods, but the inability to sell products internationally results in lost jobs and lower wages.
Interestingly enough, polls show that most Americans are okay with tariffs on China, while opinions on Canadian and Mexican tariffs are mixed and markedly lower. Having never experienced a situation this severe, many Americans remain ignorant of how tariffs affect their daily lives. Even where companies plan to expand operations in the US, those expansions won’t happen fast enough to keep the US economy from plummeting in the interim.
Sen. Susan Collins, R-Maine, said she’s “very concerned” about the tariffs going into effect because of her state’s proximity to Canada. “Maine and Canada’s economy are integrated,” Collins said, explaining that much of the state’s lobsters and blueberries are processed in Canada and then sent back to the U.S. According to the Federal Reserve Bank of Atlanta, prices on everyday items such as groceries could immediately rise as much as 1.62%. At the same time, American income will go down and many jobs will be eliminated entirely.
What does one do when the money in your wallet starts to shrink? If one is lucky, they’ll be able to pick up side jobs to help supplement their income. The standard 40-hour workweek hasn’t been enough to support the average worker for the last decade, so this isn’t a new concept. What’s different is that more people will have to work in excess of 60 hours a week just to maintain the lifestyle they currently have.
Farmers, however, and others who deal directly in the growing or mining of raw materials, have fewer options. Grain already harvested and sitting in silos won’t move. That means prices on this year’s crops will decline. Many farmers already have to take out loans to get them through the growing season, but with prices falling, they may not be able to pay back those loans. Many family farms and smaller operations in other areas could go completely under.
We tend to forget that the economy is tightly integrated. When one sector fails, neighboring sectors are negatively affected. A domino effect happens quickly and once it starts, stopping the devastation to the economy is almost impossible.
Consider what happened during the 2009 recession. A blow-up in the housing market caused unemployment to go above ten percent for the first time in over 20 years. That was minor compared to 1933 when 25% of all Americans were unemployed, largely thanks to the tariffs that Congress had imposed. Technically, 75% of Americans were still employed, but that was not enough to avoid the devastating effects felt by the entire nation.
Are we looking at a similar situation now? Severe unemployment could be just the beginning of our problems. With companies looking to cut costs anywhere they can, AI and automation are solutions that save money while trimming the workforce. Jobs that are plentiful today could simply disappear even as companies “invest” in American production. Jobs that remain are more likely to not have the advantage of collective bargaining by unions, so pay is more likely to decrease.
Bottom line: we’re screwed, and that’s exactly what the administration wants. People who are poor and struggling are less likely to take to the streets and protest. People who don’t have reasonable access to food become ill. A population that can’t respond is easy to dominate.
If anyone is going to fight back, it has to happen now. Marches have to happen now. Protests have already been happening in town halls across the country, but those efforts need to expand dramatically. Over the last weekend, the vacationing family of VP Fuxacouch had to be moved to an ‘undisclosed location’ because of protests. Every elected official at ever level should feel that same level of threat as they continue to take no action to stop the president’s dismantling of the economy.
Now is the time to make a difference. By the time we feel the full effects of a trade war, protesting may not be an option.