Issue 9

By David Thomas Graves

Tariffs aren’t punishing foreign countries, they’re punishing you.

I wrote this article because too many people are being misled about what tariffs really are and who they actually hurt. Politicians love to spin tariffs as a tool to punish foreign countries and protect American jobs, but the truth is, tariffs are a hidden tax on American workers, on you. Every time you fill up your gas tank, buy groceries, or pay your electric bill, you’re feeling the effects of these policies, whether you realize it or not. This isn’t about economic strategy; it’s about political theater that leaves working-class Americans footing the bill. I’m here to cut through the noise and expose how tariffs, especially on our closest allies like Canada and Mexico, are crippling the very people they claim to protect.© David Thomas Graves 2025

Every time you fill up your gas tank, stock up on groceries, or pay your electric bill, you’re footing the bill for bad policies disguised as economic strategy. Politicians love to talk tough about tariffs, pretending they’re sticking it to foreign competitors. But the truth? Tariffs are just another way for the government to dig deeper into your wallet. They don’t protect jobs, they kill them. They don’t make America more competitive, they cripple us. And when you stack tariffs on top of inflation? That’s an economic death sentence for the American middle class.

Let’s break this down.

The Issue

Let’s start with the facts: 60% of the oil and natural gas we use comes from Canada. But here’s the thing, we’re not just importing it, we’re getting it at a steep discount. That means lower gas prices, lower heating bills, and cheaper electricity - all subsidized by the Canadian oil and gas industry. That’s not charity; it’s a hard economic reality that benefits millions of American families every single day.

To put it in perspective, 120 million Americans rely on Canadian oil and gas to keep their homes warm, their cars running, and their businesses operating. That’s more than a third of the U.S. population. So, what happens when we slap a 25% tariff on that energy? Your gas prices explode. Your heating bill skyrockets. Your electricity costs surge. And here’s the thing, Canada isn’t paying that tax. You are.

And it doesn’t stop at energy.

Let’s talk about infrastructure. After the devastating wildfires in California, where do you think Los Angeles is going to get the lumber it needs to rebuild? Canada. 30% of the softwood lumber we use in the U.S. comes from Canada, and that accounts for 80% of our total lumber imports. So, when you’re trying to build a home, fix a roof, or even just buy furniture, you’ll be the one paying for that 25% tariff, not Canada.

Now, tell me how that helps the American worker.

Slapping tariffs on Canada isn’t just bad policy, it’s economic suicide for American workers. You can’t call yourself “pro-worker” while making it more expensive to heat homes, build businesses, and fuel the economy. It’s like setting your own house on fire just to spite your neighbor.

Mexico: Our Economic Wingman, Not the Enemy

Now let’s shift gears and talk about Mexico.

Mexico is doing something critical for the U.S. economy that most people overlook. They’re producing the goods we used to get from China, and that’s a game-changer. Think about it: every time you buy a product made in Mexico instead of China, that’s a win for American economic sovereignty. It strengthens our supply chains and reduces our dependence on a geopolitical adversary.

Let’s cut the BS. The U.S. only wants to pay China’s prices for electronics, and appliances. And manufacturing those same products in the U.S.? That would cost three times as much, pricing out everyday Americans and crushing consumer spending. But here’s where Mexico bridges the gap. They produce goods at a cost that’s affordable for American consumers, but without enriching a country that actively works against U.S. interests.

But it gets even better.

As more companies move their manufacturing to Mexico, Mexican workers start demanding better wages and working conditions. And you know what that does? It gradually increases the cost of goods, but not in a way that shocks the system. This slow price adjustment gives American manufacturers the breathing room they need to compete.

It’s like easing into cold water instead of jumping into an ice bath. Tariffs create shocks. But trade partnerships with Mexico? They create sustainable growth. That slow, steady climb in production costs helps bring jobs back to America because it levels the playing field naturally, not through artificial, government-imposed tariffs that backfire on American consumers.

So, slapping 25% tariffs on Mexico? That’s not just bad policy, it’s irresponsible. It’s like punching your best friend in the face and expecting them to still invite you over for dinner. Will tariffs work in the short term? Sure, because America is an economic powerhouse. But will they benefit us in the long run? Absolutely not. Because allies don’t forget when you kick them while they’re down.

Are Tariffs a Viable Tax Structure in Today’s Economy?

That’s the million-dollar question. And the answer isn’t as simple as a yes or no. Do I believe tariffs can be useful? Absolutely. Tariffs can be a strategic tool when used wisely against economic adversaries, countries that manipulate markets, undercut wages, or engage in unfair trade practices. But there’s a line.

• Am I pro-tariff on Canada? Absolutely not.

• Am I pro-tariff on Mexico? Absolutely not.

• Do I see strategic industries that might benefit from small, targeted tariffs? Yes, but not at 25%, not even at 5%. Maybe, just maybe, at 1-2% in very specific situations where we’re trying to bolster startups or incentivize growth in U.S. sectors that genuinely need protection.

But let’s be real here, tariffs on Canada and Mexico aren’t strategic. They’re economic sabotage.

And here’s the thing that isn’t getting enough attention: tariffs are a silent tax on American workers. That’s what this article is really about. You’re not just paying more for foreign goods, you’re getting hit with a hidden tax every time you fill up your gas tank, buy groceries, or upgrade your phone.

Tariffs Aren’t What You Think They Are

A lot of people hear the word tariff and think, “Oh, that’s a tax on foreign countries.” But that’s not how it works. A tariff is a tax on you, the American consumer. When the U.S. slaps a 25% tariff on Canadian goods, Canada doesn’t pay that tax. You do. Every time you buy Canadian oil, natural gas, food, or electronics, you’re the one footing the bill.

Let’s put it in perspective. Imagine the U.S. government puts a 25% tariff on Canadian beef. That doesn’t hurt Canadian ranchers nearly as much as it hurts you when you go to the grocery store and find that steak you were planning to grill just got a whole lot more expensive. Same thing with oil and gas. When tariffs hit Canadian energy, your gas prices go up, not Canada’s.

And it doesn’t stop there. Canada and Mexico will retaliate by slapping their own tariffs on American goods. That means American farmers, manufacturers, and exporters will suddenly find it more expensive to sell their products in two of our biggest markets. And guess what? That’s going to cost American jobs.

Inflation + Tariffs = Economic Collapse

Now, let’s talk about the elephant in the room: inflation.

Inflation is already bleeding the American worker dry. The U.S. government has been printing money like it’s going out of style, 7% more every year. Even before tariffs come into play, inflation is quietly eroding your purchasing power by 7% annually.

But wait, it gets worse.

Remember the COVID stimulus? In 2021, the federal government printed an unprecedented 26.6% more money than the year before to cover pandemic relief. That drove real inflation up to 13-15% per year, far beyond the 3.5% the government claims with their cooked Consumer Price Index numbers.

So, what happens when you throw 25% tariffs on top of that?

You’re now staring down the barrel of 35-40% in hidden taxes on every dollar you spend. And that’s not just on luxury items, that’s on the basics: food, fuel, energy, electronics, everything that keeps your life running.

And guess what? That doesn’t even include your federal income tax, state income tax, sales tax, or all the other government fees and levies that chip away at your paycheck. By the time you add it all up, working-class Americans could be forking over 65-85% of their income just to stay afloat.

Let me say that again: 65-85% of your income, gone, eaten up by inflation, tariffs, and taxes.

The Short-Term Gain, Long-Term Pain of Tariffs

Now, some folks will argue that tariffs can bring back American jobs. And in certain cases, they’re right - temporarily. But here’s the harsh reality: government-forced incentives don’t last. When those tariffs come off, the jobs they “created” vanish too.

Why? Because companies don’t set up shop in countries where it’s expensive, overregulated, and unstable. They go where it’s profitable. If the U.S. doesn’t offer a competitive business environment, no amount of tariffs will make companies stay. You can’t bully businesses into loyalty, they’ll leave the moment the pressure’s off.

Take Mexico as an example. Right now, they’re producing goods that we used to get from China - cheap, essential products that keep our shelves stocked and our prices low. Moving that production to Mexico is a good thing for U.S. sovereignty and security. It reduces our dependence on China, an economic adversary. So why would we punish Mexico with tariffs and risk pushing those supply chains right back into China’s hands?

The same goes for Canada. They supply a huge portion of our oil, natural gas, and raw materials. Tariffing Canadian energy means higher fuel costs at the pump for you. And when fuel prices go up, everything else goes up with them, from transportation to groceries to utilities. It’s a domino effect that hits the middle and working class the hardest.

Tariffs Aren’t Pro-Worker—They’re Political Theater

Let’s not kid ourselves. Tariffs like these aren’t about protecting American workers. They’re about protecting politicians’ approval ratings.

Slapping a 25% tariff on Canadian or Mexican goods might sound tough on the campaign trail, but in reality, it’s a tax on you, the American worker. It’s a way for politicians to score points without solving the underlying economic issues.

If they really cared about American workers, they wouldn’t be jacking up the cost of your groceries, your gas, and your rent. They’d be working to reduce inflation, cut unnecessary regulations, and create an environment where businesses want to stay.

But that requires real leadership. Tariffs are just an easy soundbite.

The Bottom Line: Tariffs on Allies Are a Losing Game

So, here’s where I stand:

• Am I pro-tariff on Canada? Absolutely not.

• Am I pro-tariff on Mexico? Absolutely not.

• Do I see strategic industries that might benefit from small, targeted tariffs? Maybe, at 1-2%, not 25%.

Because here’s the truth: tariffing our closest allies isn’t strength, it’s stupidity. Tariffs won’t make America stronger. They’ll just make Americans poorer. And that’s the real betrayal.

If we want to win the future, we need strategies that lift us up, not policies that drag us down. Tariffs aren’t it.

Final Thought

At the end of the day, inflation is the real enemy of the American worker. And piling tariffs on top of inflation is like handing a drowning man a brick. It doesn’t fix the problem, it makes it worse. If we want to build a strong, sustainable economy that works for everyone, we need real solutions.

Tariffs aren’t it.