Trump's tariffs: a war against the working class
wsws.org -- Thursday, August 14, 2025, 11:46:26 PM Eastern Daylight Time
Categories: U.S.–China Relations, Economic Policy & Jobs, Trade Policy & Tariffs
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The imposition by the Trump administration of the highest US tariffs since the disastrous Smoot-Hawley Act of the 1930s is a declaration of war against the American and international working class.
Trump has claimed that "billions of dollars in tariffs are now flowing into the United States of America." This is an outright lie -- tariffs are internal, not money that flows in from abroad.
They are a tax on an importer of goods that is ultimately passed on to consumers in the form of higher prices.
Trump's measures are already being paid by workers in the form of higher prices on all consumer goods. They will rapidly bring job cuts, worsening working conditions -- safety in particular -- and wage cuts as employers seek to compensate for the increase in the cost structure of US industry across the board.
A central purpose is to pay for the major handouts to the ultra-wealthy and the corporations via the tax cuts in the budget bill.
But the implications go well beyond this immediate aim. History does not repeat itself, but there are lessons to be drawn from it. The imposition of tariffs in the 1930s played a major role in triggering and then deepening the Great Depression, which led ultimately to World War II. The same objective logic is lodged within Trump's economic war against the world.
The capitalist system was only reconstructed after the greatest bloodbath in history on the basis of the economic power of US capitalism. But that very development led to the undermining of the economic supremacy of the US, which saw its initial expression in the decision on this day in 1971 by US President Nixon to remove the gold backing from the US dollar.
A new monetary order was established based on the dollar as a fiat currency, without any basis in real value in the form of gold. But the underlying historic crisis of American capitalism continued to deepen, leading to a situation where, instead of being the industrial powerhouse of the world, it has been transformed into the epicenter of financial speculation and parasitism.
The US is now the most indebted country in history -- $36 trillion and rising. Stretching back to the October 1987 stock market crash, followed by the crisis of 2008 and the near meltdown of the entire financial system in 2020 at the start of the COVID pandemic, it has been rocked by a series of ever-deepening financial crises, with more on the horizon.
The essence of the policies of the Trump regime is to seek to overcome this existential crisis through what its proponents call a "new global trading order" in which US imperialism has the position of an overlord over the global economy, handing out diktats to friends and foes alike under the threat that unless they comply, they will be economically crushed, accompanied by equally ruthless measures against the working class at home.
The tariff measures of the Trump regime are being carried out through two channels.
The blanket tariffs against countries -- ranging from the lowest level of 10 percent up to 40 or even 50 percent -- are being imposed under the International Emergency Economic Powers Act (IEEPA) of 1977, which Trump claims gives the president the authority to take such action because of the "national emergency" resulting from trade deficits.
This decision was ruled to be illegal by the Court of International Trade in May, but it is now being challenged on appeal by the Trump administration, first to a Federal court and possibly going to the Supreme Court, on the grounds that a reversal of tariffs would lead to a major financial crisis akin to the Great Depression.
Expressing the drive of the administration to proceed regardless, Treasury Secretary Scott Bessent has said that "the more deals we've done, the money coming in, it gets harder and harder" for the Supreme Court to "rule against us."
In addition to the tariffs imposed under the IEEPA, there are tariffs on particular commodities, including steel, aluminum, autos, copper, computer chips, and, down the track, pharmaceuticals, on which Trump has threatened to impose a levy of 200 percent.
The objectives of the tariff war against the world have been outlined by Trump in statements and executive orders making clear that it is aimed at nothing less than the destruction of the post-war system, which, it is claimed, allowed the US to be "ripped off," its industrial capacity weakened, and thereby its military capability undermined.
These orders have identified China as the central target, with continuous declarations from the administration, the Democrats, and the military-intelligence establishment that its economic and technological development is an existential threat that must be crushed at all costs.
The rationale for the Trump economic war was clearly set out in an essay by Jamieson Greer, the US trade representative, in the New York Times of August 7, entitled "Why We Remade the Global Order."
The previous system, initiated in the immediate post-war period and continuing through to the establishment of the World Trade Organization in 1995, was "untenable and unsustainable," with the "biggest winner" being China.
Greer hailed the so-called deal between Trump and the European Union at the end of July, announced at Trump's golf course at Turnberry, Scotland, as an "historic agreement" and the model to be followed.
There was no "agreement." The EU was simply told that unless it agreed to the terms dictated by the US, it would have a tariff of 30 percent imposed on its exports, delivering a massive blow to its economy, which is already experiencing near-recessionary conditions.
In addition to compliance with a 15 percent tariff, the US secured agreement for increased purchases of military equipment and energy while giving nothing in return and leaving open the possibility for further tariffs on individual commodities, including pharmaceuticals.
Reviewing so-called deals with other countries, Greer said commitments given were "actionable," and the US would "closely monitor" the situation and "swiftly reimpose a higher tariff rate for noncompliance if needed," describing tariffs as a "mighty stick."
He noted that deals had also come with "significant investment commitments," including $600 billion in the case of the EU and $350 billion from South Korea.
"These investments -- 10 times larger than the inflation-adjusted value of the Marshall Plan that rebuilt Europe after World War II -- will accelerate US reindustrialization," he wrote.
While there is no prospect of this perspective being realized, the intent is clear. With the threat of massive tariffs, the US will seek to draw in tribute from the rest of the world in the manner of a Mafia gangster.
While China is the main target of the new world order, the US has not been able to enforce its dictates so easily. After it tried a full-frontal assault with the announcement of tariffs of 145 percent, China retaliated by imposing export controls on rare earth and rare earth magnets, of which it has a near-monopoly, and is critical for major sections of the auto and military industries.
These measures forced Trump to call a truce, now extended from the first week of August for another three months until November. The truce, however, is not the start of some resolution process, but it will be used by the US to gather the resources needed to be able to resume the full-scale attack.
The extent of the onslaught against the working class at home is indicated by the initial figures of the costs of the tariffs now being incurred.
Major corporations have already taken significant blows. General Motors has said it has paid out more than $1 billion in tariffs on automotive parts in the second quarter. Stellantis has said tariffs on imports will cut $350 million from its bottom line, and Nike said its profits will be reduced by $1 billion.
Smaller industries confront devastating consequences. According to a report on Bloomberg, the US Chamber of Commerce has estimated that about 236,000 small business importers -- those with fewer than 500 workers -- bought goods worth around $868 billion in 2023. The chamber said that the combined annual tariff hit to these companies would be $202 billion, an average of $856,000 for each firm.
These massive amounts of money, and the even bigger sums to come, will be paid for by the working class as the effect of the tariff hikes flows through the entire economy, bringing rising prices and increased job destruction -- that is the inexorable logic of the capitalist profit system.
The Trump regime maintains that tariffs boost jobs -- another lie, refuted by hard data. Steel tariffs introduced in 2018 are estimated to have increased the number of steel jobs by 1000. But the number of jobs lost in industries that use steel has been calculated at 75,000 because of the higher prices charged.
The issues before the US and international working class stand out in stark relief. The International Committee of the Fourth International and its affiliate Socialist Equality Parties, call on workers to fight for an independent program against Trump's economic and class war. The watchword must be "the main enemy is at home."
That is, implacable opposition to the destructive economic nationalism of Trump must be matched by the equally determined opposition by workers in the rest of the world to the economic nationalism of their "own" ruling classes.
This is the foundation for the unification of the international working class and the development of a socialist program to confront the historic crisis of the global capitalist system, of which the Trump economic war is the malignant expression.
This crisis is rooted in the inherent contradiction of capitalism -- that between the global economy and the division of the world into rival nation-states and imperialist powers -- intensified to an enormous degree by the globalization of production over the past four decades.
US imperialism seeks to "resolve" it through a war against its rivals abroad and a war against the working class at home. The working class must resolve it through the fight for the program of internationalist socialism and the building of the necessary revolutionary party to lead this struggle. There is no third road.
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Sign Our PetitionThe imposition of tariffs by the Trump administration has reignited discussions reminiscent of the economic upheavals of the early 20th century, specifically the Smoot-Hawley Tariff Act of 1930. This historical parallel is not merely a nostalgic reference; it serves as a stark reminder of the detrimental impacts that protectionist policies can have on both domestic and international economies. While Trump has touted the financial inflow from tariffs as a boon for the United States, the reality is that these tariffs represent a tax on American importers, costs which are invariably passed down to consumers. This shift places an additional burden on the working class, who are already grappling with stagnant wages and rising living costs. Understanding this context is crucial in dissecting how such economic policies can exacerbate existing inequalities while failing to solve the underlying structural issues of the American economy.
The broader implications of Trump’s tariffs extend far beyond simple consumer economics; they are emblematic of a more significant ideological battle over the nature of capitalism itself. Historically, the US has positioned itself as a leader in promoting free trade, a principle rooted in the post-World War II economic order. However, the shift toward aggressive protectionism signals a retreat from these ideals, aligning instead with a form of economic nationalism that seeks to prioritize the interests of a few at the expense of many. The notion that these tariffs will somehow rejuvenate American manufacturing or lead to job creation is undermined by historical evidence suggesting that protectionist policies can lead to retaliatory measures from other nations, further isolating the US economy and amplifying the cycle of decline.
Moreover, the current economic landscape cannot be divorced from the historical context of American capitalism's evolution. Since President Nixon abandoned the gold standard in 1971, the US dollar has operated as a fiat currency, leading to a financial system that is increasingly disconnected from tangible economic value. This shift has facilitated a culture of speculation and financialization that prioritizes short-term profits over long-term stability. The history of financial crises—from the 1987 stock market crash to the 2008 financial meltdown and the COVID-19 pandemic—illustrates the fragility of an economy built on such a foundation. The Trump administration's tariffs can be seen as a desperate attempt to manage these deep-rooted crises through an aggressive, imperialistic approach to trade that ultimately seeks to reinforce the power of a dwindling economic hegemony.
The ramifications of these tariffs are particularly acute for the working class, who are often the first to bear the brunt of economic mismanagement. As prices for everyday goods rise, combined with potential job cuts and worsening working conditions, the promise of "America First" becomes a hollow slogan for many. Employers, facing increased costs due to tariffs, may resort to slashing wages or compromising workplace safety to maintain their profit margins. This cycle not only threatens the immediate economic security of workers but also undermines the very fabric of the social contract that has historically tied the American workforce to the promise of a better life through hard work and fair compensation.
In the face of these challenges, it is essential for advocates of economic justice to draw on historical lessons and contemporary analyses to combat the narratives surrounding tariffs and protectionism. Engaging in informed discussions about the long-term impacts of such policies can empower individuals and communities to advocate for systemic change. This involves not merely opposing tariffs but also addressing the fundamental issues of wealth distribution, corporate influence in politics, and the need for a more equitable economic framework. By fostering a deeper understanding of these connections, activists can better mobilize support for policies that prioritize the welfare of the working class and challenge the entrenched systems of power that perpetuate economic inequality.
The imposition of tariffs by the Trump administration marks a significant turning point in the history of American economic policy, echoing the disastrous consequences of the Smoot-Hawley Act of the 1930s. The current administration's approach has sparked intense debate, particularly around its perceived aims and the impact on the working class. The rhetoric surrounding these tariffs may suggest an ethos of nationalism and protectionism; however, a closer examination reveals that they disproportionately harm the very demographic they purport to protect. The working class, which has long been the backbone of the American economy, finds itself shouldering the burden of rising consumer prices and job insecurity, as the costs of these tariffs ultimately trickle down to those least able to afford it.
Historically, protectionist measures like tariffs often emerge during times of economic strife as governments seek to shield domestic industries from foreign competition. However, the lessons from the Great Depression serve as a stark reminder of the dangers inherent in such policies. The Smoot-Hawley tariffs did not save American jobs; instead, they exacerbated economic decline and contributed to global recession. The tariffs imposed by the Trump administration are similarly misguided; while intended to bolster American manufacturing, they instead serve to inflate prices on imported goods, thus eroding the purchasing power of working-class Americans. It is crucial to recognize that these measures are not isolated; they form part of a broader strategy that prioritizes corporate interests over the welfare of everyday citizens.
As we navigate this complex landscape, it is essential for Americans to remain vigilant and informed. An informed citizenry is the bedrock of democracy and can challenge the status quo. Engaging in grassroots activism, participating in town halls, advocating for equitable trade policies, and supporting local businesses can help counter the narrative that tariffs are beneficial. Moreover, we must push for greater transparency in trade negotiations and ensure that the voices of workers are prioritized in conversations about economic policy. The ongoing struggle for fair labor practices and living wages must remain at the forefront of our collective efforts, as the fight against corporate greed is intrinsically linked to the battle against harmful tariffs.
Educational initiatives play a critical role in empowering individuals to make informed decisions and understand the implications of national policies. Schools, community organizations, and local governments should prioritize economic literacy, focusing on the interconnectedness of global trade, consumer rights, and labor rights. By fostering an understanding of economic systems and their historical context, we can equip future generations with the tools necessary to advocate for just policies. Educational resources should also emphasize the importance of international solidarity among workers, highlighting the shared struggles faced by labor movements across the globe.
In summary, the tariffs imposed by the Trump administration represent more than just a misguided economic strategy; they are a reflection of a broader systemic failure that prioritizes corporate profits over the welfare of the working class. To address this issue, we must engage in thoughtful discourse, advocate for equitable policies, and promote educational initiatives that empower citizens. The lessons of history remind us that the path forward must be paved with collective action and solidarity among workers, both domestically and internationally. Only through sustained engagement and grassroots activism can we hope to forge an economic landscape that uplifts all Americans rather than perpetuating cycles of inequality and strife.
To address the economic implications of tariffs as outlined in the article, we can take a multi-faceted approach that prioritizes advocacy, education, and community engagement. Here are actionable ideas and steps individuals can take to combat the negative effects of these tariffs:
### Personal Actions
1. **Educate Yourself and Others:** - Stay informed about economic policies, especially tariffs, and their impacts on working-class communities. Share insights with friends, family, and social media networks to raise awareness. - Host community discussions or online forums to delve into the complexities of tariffs and their societal implications.
2. **Support Local Economies:** - Prioritize purchasing from local businesses and cooperatives instead of large corporations that might be disproportionately affected by tariffs. - Organize or participate in local farmers' markets and trade fairs to promote local goods.
3. **Engage in Community Organizing:** - Join or form local advocacy groups focused on economic justice, fair trade, or workers' rights. This can amplify collective voices and influence local policy.
### Advocacy and Petitions
1. **Sign Petitions:** - Look for petitions that oppose harmful tariff policies. Websites like Change.org or MoveOn.org often host such petitions. - Example: Petitions aimed at urging Congress to reconsider tariffs and support working-class families can be impactful. You can also create your own petition if you have a specific local impact in mind.
2. **Contact Legislators:** - Write to your congressional representatives expressing your opposition to harmful tariffs and urging them to protect working-class interests. - **Who to Write:** - **U.S. House of Representatives**: Find your representative at [house.gov](https://www.house.gov) and use their contact form or email. - **U.S. Senate**: Find your senators at [senate.gov](https://www.senate.gov) and use their contact forms or email.
- **Sample Email/Letter:** ``` Dear [Representative/Senator Name],
I am writing to express my concern regarding the tariffs implemented by the Trump administration and their detrimental effects on working-class families. These tariffs disproportionately burden consumers and risk job losses, worsening working conditions, and wage cuts.
I urge you to advocate for policies that protect working-class interests and promote fair trade practices. Please consider the long-term consequences of these tariffs on our economy and our communities.
Thank you for your attention to this important matter.
Sincerely, [Your Name] [Your Address] [Your Email] ```
3. **Engage with Labor Unions:** - Connect with local labor unions and support their efforts to advocate for workers’ rights and fair economic policies. Attend meetings, rallies, or events organized by unions to show solidarity. - Example: Reach out to the AFL-CIO or your local chapter and volunteer for campaigns that align with fair labor practices.
4. **Participate in Public Demonstrations:** - Join peaceful protests or demonstrations organized by labor rights groups or economic justice organizations. This can elevate visibility for the issues at hand and demonstrate widespread discontent.
5. **Support Advocacy Organizations:** - Donate to or volunteer for organizations that focus on economic justice, fair trade, or labor rights, such as the Economic Policy Institute or the Center for Economic and Policy Research.
### Community Engagement
1. **Create Awareness Campaigns:** - Work with local nonprofits or community organizations to launch awareness campaigns about the implications of tariffs on local industries and workers.
2. **Host Workshops:** - Organize workshops on economic literacy and the effects of tariffs on everyday life, ideally in collaboration with local educational institutions or community centers.
By taking these steps, individuals can collectively work towards mitigating the adverse effects of tariffs and advocate for a more equitable economic system that prioritizes the welfare of the working class. Remember, change often begins at the grassroots level, and every action counts.