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Written by Mark Christian
Libertarians and economically right-wing individuals have often criticized President Trump’s proposal to implement tariffs. For many, the cornerstone of their economic philosophy is the belief that free trade and the free market are the ultimate economic systems—and I agree that the free market consistently produces the best economic outcomes. However, is free trade truly part of a free market? At first glance, tariffs may seem like interference in the market, contrary to the principles of a free market economy. But I’m here to argue that from a nationalist libertarian perspective, tariffs can serve as a crucial tool to uphold the free market. In a global economy that is far from free, tariffs act as a countermeasure to serious systemic exploits that threaten fair competition and national sovereignty.
Libertarian philosophy typically recognizes the state’s role in providing a common defense for its people. Protecting national sovereignty and defending the free market within the nation are core responsibilities of the state. To fulfill these responsibilities, the state must ensure its capacity for self-reliance, particularly in critical industries such as defense manufacturing and energy production. Dependence on foreign suppliers not only poses risks to national security but also undermines the stability of the domestic market.
For instance, the U.S. has historically relied on foreign producers for essential materials like steel and semiconductors. In times of geopolitical tension or outright conflict, such reliance can severely jeopardize the nation’s ability to respond effectively. A libertarian perspective emphasizes the importance of maintaining domestic production capacity in these areas—not through excessive government intervention, but by creating conditions that enable these industries to thrive.
Strategically applied tariffs can act as a safeguard in this context. By imposing tariffs on foreign competitors in critical industries, the government can incentivize domestic production, reducing reliance on adversarial powers. This approach aligns with the libertarian principle of self-reliance, ensuring that both the nation and its markets remain resilient against external threats.
Moving beyond national security, there is a strong case that tariffs are, in fact, an integral part of the free market itself. At its core, the free market thrives on fair competition. This is why monopolies are considered antithetical to free market principles—they circumvent the natural balance maintained by the "invisible hand."
The global market, however, is inherently different. Comprising the interconnected markets of various nations, the global economy operates on fundamentally uneven terms. For instance, U.S. companies are required to adhere to stringent regulations regarding labor, environmental standards, and taxation. In contrast, many foreign competitors frequently bypass these rules, giving them an unfair advantage and enabling them to undercut American producers.
This imbalance distorts the natural dynamics of the market, creating what might be termed “unequal flooring.” A genuinely free market relies on a level playing field, where all participants operate under similar conditions, allowing the self-correcting mechanisms of the market to function effectively. When foreign actors engage in practices like government subsidies, dumping goods at below-market prices, or manipulating currency values, the equilibrium of the market is disrupted.
For example, China’s state-controlled enterprises and heavily subsidized industries have flooded global markets with artificially cheap goods, undermining U.S. industries and threatening domestic jobs. Furthermore, the global trading system, represented by entities such as the World Trade Organization (WTO), exacerbates these imbalances by granting China “developing nation” status, which affords it unfair advantages in trade policies. In such a distorted global market, tariffs serve as a corrective measure. By imposing tariffs on goods produced under unfair conditions, the U.S. government can help restore balance, allowing domestic businesses to compete on equal terms. Far from being a permanent distortion of the market, tariffs are a necessary and strategic response to systemic imbalances caused by foreign manipulation.
Critics of tariffs from a free-market viewpoint often argue that tariffs constitute government overreach and violate the principles of a free-market system. However, tariffs should be understood as a temporary tool to restore balance and provide the level playing field essential for the free market to function effectively. Unlike subsidies or bailouts, which interfere with the market by decisively picking winners and losers, tariffs operate as a market-based mechanism designed to incentivize fair competition.
Another common objection is that tariffs raise the price of consumer goods. While this concern is valid, in many cases, the domestic market will adjust, and price increases may align with the rate of inflation. Furthermore, tariffs offer significant long-term benefits, such as increased job retention, reduced transportation costs, and a strengthened domestic industrial base—all of which can offset any temporary price increases. Additionally, the tax revenue generated from tariffs can reduce the overall tax burden on citizens, further mitigating their impact on consumers.
Some argue that the free market will naturally self-correct without tariffs. While this is an ideal scenario, it fails to account for the reality that foreign actors often exploit systemic imbalances to suppress competition. For example, when Chinese state-owned enterprises receive subsidies from the Chinese Communist Party (CCP), they can flood global markets with cheap steel. This predatory pricing strategy eliminates competitors, enabling them to dominate the industry and dictate prices in the absence of competition. A competitive and dynamic market requires a fair starting point—one built on equal footing—or it ceases to be a true free market.
While free-market purists may disagree, it is evident that tariffs can align with the principles of a free market. The global economy is not a level playing field; different nations operate under vastly different regulations, standards, and market conditions. Tariffs help ensure that only the best products, produced under fair conditions, succeed in the market. They safeguard both national security and market fairness, which are critical components of a genuine free-market system. Tariffs, when applied with nuance and precision, strike a balance between promoting free trade and protecting the free market. Such measures align with libertarian economic values, addressing the complexities of global trade while maintaining the integrity of domestic markets. By recognizing the occasional need for intervention, libertarians can support policies that strengthen both the nation and its economy.
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About the Author
Mark Christian is a political commentator and contributor to America First Insight. Follow him on X (formerly Twitter).
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