Eric Schliesser on the likely cronyism from Trump's tariffs

From my own, more (skeptical) liberal perspective tariffs are an expression of mistrust against individuals’ judgments; they limit and even deny us our ability to shape our lives with our meaningful associates as we see fit.  And tariffs do so, in part, by changing the pattern of costs on us, and, in part, by altering the political landscape in favor of the well-connected few.  

Of course, in practice, tariffs are always hugely regressive by raising costs on consumer products.  This is, in fact, a familiar effect of mercantilism and has been a rallying cry for liberals since Adam Smith and the Corn league.  That is, some of the most insidious and dangerous effects of tariffs are evidently political in character.  They create monopoly profits for the connected few, who can, thereby, entrench themselves against competitors, regulators, and consumers.  It is well known that once a tariff is entrenched it is incredibly difficult to remove.  They create permanent temptations to bribe the executive and those with access to him.  

Watch for stories about import-quotas, tariff holidays, and ad hoc tariff exemptions to appear in the press and subsequent policy.  Political and economic uncertainty is generally a self-reinforcing process.  To undo it more and more actions by the executive are demanded by a scared public manipulated by profit-seeking adventurers.  It’s entirely predictable we’ll see the rise of a system of selective subsidies and cartels as Trump Tariffs are entrenched. 

~ Eric Schliesser, professor of political science at the University of Amsterdam

(Quoted by Lew Rockwell in "Trump's Insane Tariff Policy," April 17, 2025