Unions Raise Wages. Tariffs Don’t

The following is part of a post from the Economic Policy Institute: 

Tariffs do not automatically raise wages or create good jobs. While strong tariff policies can help preserve jobs in industries facing unfair competition, strong unions are a prerequisite for tariffs to translate into widespread job and wage gains.

In 2024, Donald Trump campaigned on the benefits of tariffs for U.S. workers. He claimed that tariffs would boost wages and create good manufacturing jobs by protecting domestic industries from unfair foreign competition. On the face of it, it might seem like tariffs would automatically protect entire industries, increasing profits for employers and wages for workers. But whether employers share the benefits of tariff protection with workers depends on their bargaining power—something very few workers have without a union.

Without unions, tariffs will mostly just lead to higher corporate profits in protected industries. And with the Trump administration waging the worst union busting in recent American history, high tariffs will mean corporate executives and Wall Street shareholders will see the big payday, not workers. Tariffs alone do not increase wages or create good jobs, unless the industries being protected by tariffs have strong unions.