The Real Cost of “America First”: How Tariffs Reshaped the U.S. Economy and Global Trade

The True Toll of "America First" Tariff Policies

Under the Trump Administration, “America First” became more than a slogan—it was a strategy. Central to this approach were tariffs aimed at shielding American industry from foreign competition. But beneath the protectionist promise lies a more complex—and costly—reality.

As a former border city mayor, Director of Arizona’s Department of Commerce, and Chief of Staff at U.S. Customs and Border Protection, I’ve seen how trade policies shape local economies and global trust. Today, as CEO of Intermestic Partners—an international business advisory firm I founded in 2011—I guide companies navigating the aftershocks of tariff-driven strategies.

How Tariffs Were Meant to Work

Tariffs were meant to raise prices on imports, making U.S. goods more competitive.
For example, a 20% tariff turned a $100 product into a $120 item—encouraging “buy American.”
The goal: protect U.S. industries like steel and agriculture from being undercut.

However, this protection often came at a steep price.

What Really Happened

A. Consumers Paid More

Higher import costs were passed down to shoppers.
Fewer affordable choices hit low-income families hardest.

B. Manufacturers Faced Higher Input Costs

U.S. businesses relying on imported materials saw their expenses spike.
Higher costs meant layoffs, price hikes, or closures—ironically hurting American jobs.

According to the Federal Reserve, 1.5 million fewer U.S. jobs were created due to tariff fallout by 2020.

The Steel Industry Case Study

Trump’s tariffs were supposed to revive American steel. Instead:

Costs surged for manufacturers needing raw materials.
Some steel companies trimmed production or lost contracts due to price hikes.
Allies retaliated with tariffs of their own, further escalating tension.

Economic Fallout

The Trade Partnership projected an average $915 annual cost per U.S. household.
The U.S. GDP was projected to shrink by 0.37% annually through 2024.
Diplomatic rifts widened as global partners responded in kind.

Mixed Reviews and Lingering Impact

Critics—including economists and the WTO—warned of destabilization. Supporters claimed it gave U.S. industry time to regroup. But whether a pause or a step back, the strategy left deep marks on trade, diplomacy, and family budgets.

If your business or investment strategy is affected by evolving trade policies, Intermestic Partners can help you move forward with confidence. Let’s build smarter, more resilient trade solutions—together.