The left often gaslights us, insisting tariffs are a hidden tax that raises prices and limits supply. This news story counters that narrative.
During Trump’s first term, tariffs weren’t just for tax revenue—they were a strategic policy tool.
The threat of tariffs was used to curb illegal immigration and remind the world of America’s economic power, a sharp contrast to the failures seen under Bidenomics. Yes, the cost of those foreign goods goes up. Still, by impacting the law of supply and demand, we not only can encourage a foreign nation’s policy but also encourage the manufacture of domestic goods to replace those subject to tariffs and/or/move the production of those goods to an ally or country more supportive of American policies. Short-term pain can reap long-term and lasting benefits for America and its consumers.
Another benefit is that China may rethink its domestic abuses of Uighers to produce goods cheaply for American businesses.
Here is the news story paraphrased —
Steve Madden Cuts China Production After Trump Win
Shoe retailer Steve Madden announced plans to slash its reliance on Chinese manufacturing two days after Trump’s election. Facing Trump’s proposed tariffs, the company aims to reduce sourcing from China by 40% to 45%, shifting production to Brazil, Mexico, Vietnam, and Cambodia.
Americans are returning to make the world safer and standing up for American values.
Key Points:
Steve Madden plans to significantly reduce Chinese imports, diversifying production to countries closer to the U.S.
CEO Edward Rosenfeld announced the changes, showing businesses responding quickly to Trump’s trade stance.
Trump’s proposed tariffs could impose up to a 60% tax on Chinese imports, pushing U.S. companies to rethink overseas dependency.
Commentary: Steve Madden’s quick decision highlights how Trump’s firm stance on trade is already shifting corporate strategies. The company is moving production to regional economies like Mexico and Brazil by reducing dependence on China. This aligns with Trump’s push for stronger American trade ties, potentially creating jobs and boosting economic growth in the U.S. and allied nations.
Bottom Line: Trump’s tariff threats are already influencing companies to act, proving that tariffs can be a powerful policy tool, not just a hidden tax. Steve Madden’s move reflects a broader shift toward reducing overseas dependencies and strengthening the U.S. economy.
Source: Steve Straub, The Federalist Papers
URL: federalistpapers.org