Tariffs Work — and President Trump’s First Term Proves It

April 2, 2025

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Action Summary

Objective of Tariffs: Level the playing field for American workers and businesses by imposing tariffs on imported steel and aluminum, revisiting measures from President Trump’s first term.
Economic Impact Studies:
- A 2024 study found that tariffs “strengthened the U.S. economy” and spurred significant reshoring in manufacturing and steel production.
- A 2023 U.S. International Trade Commission report noted reduced imports from China, stimulated U.S. production, and minimal effects on downstream prices.
Market and Employment Effects:
- Economic Policy Institute reported no significant correlation between tariffs and inflation, with only a transient impact on overall prices.
- Steel tariffs led to thousands of job gains in the metal industry with increased domestic production and wage hikes.
Investment & Industrial Development:
- Significant investments were made in the U.S. steel sector – over $10 billion committed to building new mills and upgrading facilities.
- Top U.S. steel companies doubled annual investments between 2017 and 2019, resulting in new projects across the nation.
Broader Economic Projections: A 2024 analysis suggested that a global tariff of 10% could potentially grow the U.S. economy by $728 billion, create 2.8 million jobs, and boost real household incomes by 5.7%.
Local Economic Boosts: States like Minnesota experienced economic improvements, with local industries such as iron ore benefitting significantly.
Media and Expert Reactions:
- Several analyses and reports, including those by the Atlantic Council and former Treasury Secretary Janet Yellen, supported the idea that tariffs encourage domestic consumption and production.
- Conversely, media outlets such as PBS, NPR, The New Yorker, and Politico warned of potential trade wars and retaliation by trading partners.

Risks & Considerations

The implementation of tariffs by President Trump could lead to increased costs for industries that rely on imported steel and aluminum, potentially affecting their financial performance and competitiveness.
While tariffs may bolster domestic production and create jobs in the steel and aluminum sectors, they could also lead to retaliatory measures from other countries, potentially impacting international trade relations and the global economy.
Vanderbilt University may need to consider the potential impact of tariffs on research funding and partnerships, particularly if international collaborations are affected by trade tensions.
The focus on domestic production and reshoring could influence the job market and economic landscape, which may affect the career prospects of Vanderbilt graduates, particularly those in industries reliant on global supply chains.

Impacted Programs

Vanderbilt’s Economics Department may see increased demand for research and analysis on the economic impacts of tariffs and trade policies, providing opportunities for academic contributions and policy advising.
The Owen Graduate School of Management could play a role in preparing students for careers in industries affected by tariffs, emphasizing skills in supply chain management and international business strategy.
Vanderbilt’s Office of Global Safety and Security might need to assess the implications of trade tensions on international travel and partnerships, ensuring the safety and continuity of global programs.
The Center for International Business Education and Research (CIBER) could focus on studying the effects of protectionist trade policies and developing strategies for businesses to navigate these challenges.

Financial Impact

The tariffs could lead to changes in the funding landscape for research and development, particularly if federal grants prioritize domestic production and innovation in affected industries.
Vanderbilt University might experience shifts in its international partnerships and collaborations, potentially affecting funding opportunities and research outputs.
There may be increased opportunities for Vanderbilt to secure funding for research on trade policies and their economic impacts, particularly through collaborations with federal agencies and industry partners.
The potential for retaliatory trade measures could impact the university’s global engagement and partnerships, necessitating adjustments in international strategies and collaborations.

Relevance Score: 3 (The tariffs present moderate risks involving compliance and potential impacts on international collaborations and funding opportunities.)

Key Actions

Vanderbilt’s Economic Research Department should conduct a comprehensive analysis of the impact of tariffs on local industries, particularly focusing on how these tariffs might affect Tennessee’s economy and Vanderbilt’s economic footprint. This research can provide valuable insights for local businesses and policymakers.
The Office of Federal Relations should engage with federal policymakers to understand the long-term implications of tariff policies on higher education funding and research grants. By staying informed, Vanderbilt can better navigate potential changes in federal support.
Vanderbilt’s Business School could develop case studies and curriculum focused on the economic impacts of tariffs, providing students with real-world examples of how trade policies affect industries and economies. This can enhance the educational experience and prepare students for careers in international trade and economics.
The Center for International Studies should explore partnerships with international institutions to study the global effects of U.S. tariffs and trade policies. Collaborative research can offer a broader perspective and contribute to global economic discourse.
Vanderbilt’s Career Services should prepare students for potential shifts in job markets due to tariff impacts, particularly in industries like manufacturing and steel production. Offering workshops and resources on navigating these changes can support students’ career readiness.

Opportunities

The emphasis on reshoring and increased U.S. production presents an opportunity for Vanderbilt’s Engineering School to collaborate with local industries on research and development projects. By leveraging expertise in manufacturing and materials science, the school can contribute to innovation and economic growth.
Vanderbilt can capitalize on the increased focus on domestic production by developing new programs and partnerships with local manufacturers. This could include joint research initiatives, student internships, and collaborative projects, enhancing Vanderbilt’s reputation and impact in the manufacturing sector.
The tariffs’ impact on the steel industry offers an opportunity for Vanderbilt’s Environmental Science Department to study the environmental implications of increased domestic production. Research on sustainable practices and technologies can position Vanderbilt as a leader in environmentally responsible manufacturing.
By engaging with the broader economic community and policymakers, Vanderbilt can position itself as a leader in the national conversation on trade policy. Hosting conferences, workshops, and public forums on the implications of tariffs can further establish Vanderbilt as a hub for innovative economic thought and practice.

Relevance Score: 4 (The tariffs present the potential for major process changes required for Vanderbilt’s programs due to economic impacts.)

Average Relevance Score: 2.2

Timeline for Implementation

N/A – No specific implementation timeline or deadline is mentioned in the text; it only discusses the historical impact and analysis of tariffs.

Relevance Score: 1

Impacted Government Organizations

White House: As the originating office for the announcement and implementation of the tariffs, the White House is central to the formulation and execution of this trade policy.
U.S. International Trade Commission (USITC): The USITC provided an in-depth report on the tariffs’ effects on U.S. imports, directly linking its analytical role to the policy’s oversight and assessment.
Department of the Treasury: Highlighted through remarks by its former Secretary, the Treasury is involved in evaluating the economic implications of the tariffs, including issues related to prices and overall economic health.

Relevance Score: 2 (Three government agencies are impacted by the tariffs policy announcement.)

Responsible Officials

N/A – The text is a retrospective analysis of tariff impacts and does not contain explicit directives assigning implementation responsibilities to any specific official or agency.

Relevance Score: 1 (The article is an analysis with no actionable directives affecting agency or Cabinet officials.)