Tariffs might seem like a complicated topic best left to economists, but they have a real impact on the lives of everyday Americans. At their heart, tariffs are a simple concept: they’re taxes on imported goods, designed to make foreign products more expensive. This encourages people to buy American-made goods and helps protect industries and jobs here at home. While there’s plenty of debate about whether tariffs help or hurt in the long run, there’s no denying they can give a real boost to certain industries when used strategically.
Take the steel and aluminum industries, for example. A few years ago, the U.S. introduced tariffs of 25% on imported steel and 10% on aluminum. These industries were facing stiff competition from overseas markets flooded with cheap materials. Without tariffs, many American producers simply couldn’t compete. The result? A much-needed lifeline for these industries, allowing them to invest in their operations, keep plants open, and preserve jobs for American workers. For publicly traded companies in these sectors, tariffs can also mean improved earnings, leading to potential stock price increases. However, the flip side is that businesses reliant on imported materials may see squeezed margins, potentially dampening their performance in the market.
Farmers have also benefited from tariffs, particularly in the agricultural sector. Crops like sugar and dairy products often face tough competition from cheaper imports. Tariffs help level the playing field, ensuring that American farmers can continue to thrive. For small family farms, which already operate on razor-thin margins, this kind of protection can mean the difference between staying in business or closing the barn doors for good.
Tariffs also play a key role in protecting American jobs. If an industry can’t compete with cheap imports, it’s not just the companies that suffer—entire communities feel the impact. Factory workers lose their jobs, suppliers go out of business, and even local diners and shops that rely on these workers see their customer base shrink. Tariffs help keep these industries afloat, safeguarding jobs and local economies.
Consider the solar panel industry. In 2018, tariffs on imported panels were introduced. While some worried this would drive up costs for installers and consumers, it also gave domestic manufacturers a chance to grow. Several companies expanded their U.S. operations, creating new jobs in advanced manufacturing and helping to diversify the country’s renewable energy sector. Similarly, tariffs on imported clothing have helped preserve jobs in the textile industry, especially in parts of the Southeast where manufacturing remains a cornerstone of local economies.
But tariffs don’t just protect existing jobs—they also encourage investment. When imports become more expensive, companies start looking for ways to produce more locally. The auto industry is a great example. In recent years, automakers like Toyota, Ford, and GM have invested heavily in U.S.-based plants, partly in response to tariffs on imported vehicles and parts. These investments create thousands of new jobs, not only in manufacturing but also in related fields like robotics, materials engineering, and logistics. When big factories expand, the benefits ripple through surrounding communities, boosting local businesses and infrastructure.
There’s also a national security angle to tariffs that often gets overlooked. Certain industries are so critical to the country’s safety and independence that we can’t afford to rely too heavily on foreign suppliers. Technology is one of those areas. Tariffs on tech imports from countries like China aren’t just about protecting American jobs—they’re also about safeguarding intellectual property and reducing the risk of dependence on foreign-controlled supply chains. It’s about making sure the U.S. can stand strong during times of geopolitical tension or economic uncertainty.
Of course, tariffs aren’t without their downsides. They can lead to higher prices for consumers and provoke retaliation from other countries, which can hurt American exporters. Investors in publicly traded companies also feel the effects—industries benefiting from tariffs may see stock prices rise, but sectors facing retaliatory measures or higher input costs might experience declines. Policymakers must carefully weigh these outcomes to avoid unintended consequences.
At the end of the day, tariffs are about more than just economics—they’re about people. They’re about the steelworker in Pennsylvania who can count on a steady paycheck, the farmer in Iowa who knows their crops won’t be undercut by foreign competition, and the factory worker in Michigan who benefits from new investments in local production. While no policy is perfect, tariffs remain a powerful tool for keeping American industries strong and ensuring that the benefits of a thriving economy reach communities across the nation. I will be showing our clients where Tariffs enable them to win as an investor and in some cases job security.
Ultimately, the question isn’t just whether tariffs are effective—it’s whether they align with the kind of world we want to build. Are we striving for a world where countries protect their own at all costs, or one where collaboration and shared prosperity take precedence? The answer likely lies somewhere in between, but it’s a conversation worth having as we navigate the complex dynamics of globalization and human progress.
Sources:
https://taxfoundation.org/research/all/federal/section-232-tariffs-steel-aluminum-2024
https://www.bcg.com/publications/2025/us-tariffs-steel-aluminum-analyzing-impacts
https://www.ibisworld.com/blog/us-tariffs/1/1127/
https://www.supplychaintoday.com/impact-of-tariffs-on-steel-and-aluminum/
https://agmanuals.com/blogs/news/tariffs-impact-on-farmers-equipment
https://en.wikipedia.org/wiki/Tariff
https://www.jpmorgan.com/search?q=tariffs
Evan R. Guido is the Founder of Aksala Wealth Advisors LLC, a 2018 Forbes Next-Gen Advisors List Member, and Financial Professional at Avantax Investment ServicesSM. Evan heads a team of retirement transition strategists for clients who consider themselves the “Millionaire Next Door.” He can be reached at 941-500-5122 or eguido@aksalawealth.com. Read more of his insights at https://finance.heraldtribune.com/category/ask-guido/. Securities offered through Avantax Investment ServicesSM, Member FINRA, SIPC. Investment advisory services offered through Avantax Advisory ServicesSM, Insurance services offered through an Avantax affiliated insurance agency. 6260 Lake Osprey Dr. Lakewood Ranch, FL 34240. The views and opinions presented in this article are those of Evan R. Guido and not of Avantax Wealth Management® or its subsidiaries. These opinions are based on Evan R. Guido observations and research and are not intended to predict or depict performance of any investment. These views are as of the close of business on 3/12/2025 and are subject to change based on subsequent developments. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. These views should not be construed as a recommendation to buy or sell any securities. Past performance does not guarantee future results. The S&P 500 is an index of 500 major, large-cap U.S. corporations. Standard & Poor's is a corporation that rates stocks and corporate and municipal bonds according to risk profiles. You cannot invest directly in an index. An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. CDs are FDIC insured and offer a fixed rate of return. They do not necessarily protect against a rising cost of living. The FDIC insurance on CDs applies in case of insolvency of the bank, but does not protect market value. Other investments are not insured, and their principal and yield may fluctuate with market conditions. Investments are subject to market risks including the potential loss of principal invested. Neither diversification nor asset allocation assure or guarantee better performance and cannot eliminate the risk of investment losses. This information is intended to be educational and does not reflect any particular investment or investment needs of any specific investor. Aksala Wealth Advisors, LLC is not a registered broker/dealer or Registered Investment Advisory firm. Aksala Wealth Advisors, LLC and Avantax are not affiliated.