Former Vice President Mike Pence has weighed in on the growing debate over tariffs, cautioning that escalating trade tensions could significantly hurt everyday Americans.
As calls for increased tariffs resurface among some GOP leaders, Pence has voiced concern that such policies may backfire, especially by increasing prices on essential goods like food, clothing, and household items.
Speaking at a recent economic policy forum in Des Moines, Iowa, Pence urged policymakers to consider the long-term effects of trade restrictions, particularly on working families already burdened by inflation.
“Tariffs may sound like a win in the short term,” Pence said, “but the real cost lands squarely on the shoulders of American consumers — and they’ll feel it at the grocery store and beyond.”
The Tariff Debate Heats Up Ahead of 2024
The debate over tariffs has intensified as the 2024 election season gains momentum. While former President Donald Trump and several Republican lawmakers have floated the idea of broad-based tariffs, even proposing a universal 10% import tax, Pence is taking a more cautious approach.
“We need to protect American industry,” he acknowledged. “But let’s be clear — tariffs are taxes. And when you tax imports, American families pay more.”
Tariffs are essentially import taxes placed on goods coming into the U.S. from foreign countries. Supporters say they protect domestic industries from unfair foreign competition, but critics argue they lead to higher prices for consumers and strain international relationships.
Pence’s comments come as data from the U.S. Department of Commerce indicates that previous tariff policies led to spikes in consumer prices, especially in sectors like agriculture, auto parts, and electronics.
A 2023 analysis from the nonpartisan Peterson Institute for International Economics found that tariffs imposed between 2018 and 2020 added over $1,200 in annual costs for the average American household.
Pence Strikes a Different Tone from Trump
Pence’s position reflects a notable break from former President Trump, who has floated aggressive new tariffs as a key component of his potential second-term economic strategy. Trump recently proposed a sweeping 10% tariff on all imported goods, calling it a “ring around the U.S. economy” to shield American workers.
But Pence, who served loyally under Trump before distancing himself during the final months of the administration, suggested that blanket tariffs risk triggering retaliatory measures from trade partners and hurting small businesses dependent on global supply chains.
“It’s one thing to negotiate tough trade deals — and I support that,” Pence said. “But it’s another thing to impose widespread tariffs that end up raising the cost of living for every American family.”
In contrast, Trump argues that tariffs are a necessary tool to rebuild American manufacturing and push back against countries like China. However, trade experts point out that past tariffs often led to retaliatory tariffs, especially on American agricultural exports, harming farmers and rural economies.
How Tariffs Could Hit Everyday Americans
Pence’s warning comes at a time when inflation is already stretching household budgets. According to the latest Consumer Price Index (CPI) report, food prices are up 4.3% year-over-year, with groceries seeing some of the steepest hikes. Experts say tariffs could amplify these increases by making imported goods more expensive and disrupting supply chains.
Retailers, including Walmart and Target, have previously said that tariffs force them to pass costs onto consumers. “We don’t want to raise prices, but if tariffs increase the cost of inventory, we’re left with no choice,” one Walmart executive told CNBC during the last tariff expansion in 2019.
For working-class families, this could mean paying more for everything from children’s school supplies to kitchen appliances — a burden that Pence argues is unnecessary at a time when the economy is still recovering.
GOP Divided on Economic Strategy
Pence’s statements reflect a broader divide within the Republican Party over how to handle trade. While protectionist rhetoric remains popular with certain parts of the GOP base, a growing number of conservatives — especially fiscal hawks — are questioning whether tariffs align with free-market principles.
Some Republicans in Congress, including Sen. Rand Paul (R-KY) and Rep. Chip Roy (R-TX), have also voiced opposition to blanket tariffs. They argue that such measures are counterproductive and ultimately hurt the very voters they’re meant to protect.
Still, others see tariffs as a political win. “Voters love the idea of standing up to China,” one GOP strategist told Politico. “The messaging works, even if the economics don’t.”
Pence, however, is betting that a more measured approach will resonate with voters worried about pocketbook issues. “Americans want leadership that strengthens our economy without raising their costs,” he said. “We don’t need a trade war — we need smart trade.”
You can read more about how tariffs impact inflation and family budgets from the Peterson Institute for International Economics.
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