Adam Smith
1723–1790, Scotland (the Scottish Enlightenment: Kirkcaldy, Glasgow, Edinburgh)
Tariffs, Insults, and the Fragmenting of a Continental Market
A trade war between close neighbours is not statesmanship but a costly experiment conducted at the labouring poor’s expense.
When a great republic slaps a fifty percent duty upon twenty billion dollars’ worth of its neighbour’s goods, it does not merely affix a tax; it proclaims a principle. We are told that these imposts, and the retaliatory ones now threatened in return, follow upon negotiations collapsed at the eleventh hour. The sums already paid in tariffs and disruption by North American automakers alone are reported at one hundred and ten billion dollars in only eighteen months. Such figures dazzle the eye, but they mislead the judgment if we pause there. In Wealth of Nations I urged that we trace every regulation to its effect upon prices. The true ledger of a tariff war is written, not in ministerial boasts, but in dearer goods and disordered employments.
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