Contributor: Four fallacies behind President Trump’s latest tariffs - Los Angeles Times

Los Angeles Times

by Veronique de Rugy

February 26, 2026

AI-Generated Deep Dive Summary

President Trump’s latest 10% tariffs, soon to be raised to 15%, mark a shift in strategy rather than an end to the trade war. The White House continues to promote arguments that downplay the negative impacts of these tariffs on American consumers and businesses. However, these claims are based on fallacies that ignore economic realities. The first fallacy is the idea that tariffs will “reshore” production, boost domestic demand, and improve wages. While tariffs may shift production from foreign to domestic manufacturers, this doesn’t magically increase consumer demand or lower prices. Instead, American consumers end up paying more for goods like washing machines and steel, which directly reduces real purchasing power. The zero-sum argument—that hurting China benefits Americans—is also flawed. Trade isn’t a zero-sum game; both countries suffer when tariffs restrict access to cheaper goods and materials. While some U.S. industries may gain, others face higher costs, limiting their competitiveness globally. The long-term economic trade-offs are rarely addressed in the White House’s rhetoric. Another fallacy is the claim that tariffs don’t harm lower-income Americans because the wealthy spend more overall. This ignores how regressivity works: lower-income families rely heavily on imported goods for essential expenses like clothing and appliances, making them disproportionately affected by

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Originally published on Los Angeles Times on 2/26/2026