Donald Trump might have hoped that his “Liberation Day” tariffs would punish China and boost the competitiveness of American industries, but they have instead had the opposite effect. Worse, the policy has had far-reaching unintended consequences that few policymakers and commentators have yet to reckon with.
BIRMINGHAM – If there were awards for unintended consequences in economic policy, the import tariffs introduced by the United States in 2025 would sweep every category. Tariffs designed to protect American producers ended up protecting their foreign competitors. Some US firms were winners, but many more were losers. The constituency invoked most often in political speeches – small businesses, the backbone of the economy – suffered the most.
