Dear Mr. President,
Re: Tariffs on China? A Tax on the Poor
Applying a 125% tariff on China in response to their retaliatory trade actions, the true casualties will not be foreign economies—but America’s poor.
Tariffs are taxes. When levied on the low-cost goods that supply Family Dollar, Dollar Tree, and corner shops across the country, these taxes become a burden carried disproportionately by low-income Americans. These retail outlets serve a vital role in our domestic landscape, offering basic goods to communities that big-box retailers like Acme overlook.
Acme is not coming to the hood. And these low-wage communities—often ignored in economic planning—are not disappearing. Tariff increases mean the small shops that serve them will face higher wholesale prices and inevitably pass those costs on to customers already stretched thin.
This is not just a trade issue—it’s a domestic economic justice issue.
If we are serious about insulating our most vulnerable from economic shocks, we must diversify our own production. America needs industries that specialize in affordable goods, serving what I call “economies within the economy.” Without that, tariff policies will continue to harm those least able to weather them.
If Trump places a 125% tariff on China in response to their retaliatory tariff, then it means poor people in the U.S. are being taxed. And what of economies of scale? Sure, the goods are cheap, but not everyone can buy at Acme. Some go to Family Dollar, Dollar Tree, and the corner shop. These stores can afford to charge low prices because they access cheap goods that serve low-wage communities.
Low-wage communities aren’t changing anytime soon, so how will they survive this tax if their main suppliers are taxed? Acme’s not coming to the hoods—they don’t thrive there.
Unless we have cheaply made goods in the U.S. that serve a particular economy, these communities will be left out. But that means the U.S. must diversify and include specializations that provide affordable goods tailored to certain “economies.”
Rev. Renaldo McKenzie
President, The Neoliberal Corporation
Host, The Neoliberal Round Podcast
Editor-in-Chief, The Neoliberal Journals
“Subscribe for more critical commentary from The Neoliberal Journals and listen weekly on The Neoliberal Round.”
—
