“Tariffs for the Poor, Tax Cuts for the Rich: The Real Cost of GOP Economics”

By Bear Howard

Bear Howard Chronicles

Republicans have long championed low taxes, small government, a strong military, and free trade. Remember Ronald Reagan? Well, Donald Trump is delivering exactly what they asked for—but not in the way they imagined.

It seems someone handed our former president a history book from the 1800s, back when America was largely agricultural and didn’t require a large standing army. But that world is long gone. Our entry into World War I on the side of the British reshaped the 20th century, eventually setting the stage for World War II through the punitive terms of the Treaty of Versailles.

Fast forward to today: the idea that tariffs alone can fund the U.S. government is a relic of the past. America is now a consumer-driven economy, and major retailers like Walmart, Target, and Amazon thrive by providing low-cost, disposable goods—most of which are manufactured overseas. If you recall, Walmart began in the 1970s as a “Made in America” brand. But over time, as the company embraced China’s rise as a global manufacturing powerhouse, it effectively became “Walmart China.”

When it comes to trade imbalances, let’s be honest: the problem isn’t China—it’s us. American consumers demanded cheap goods, and countries like China, Taiwan, and Vietnam delivered. In return, those countries used the dollars they earned to buy U.S. Treasury bonds—helping finance Trump’s tax cuts for the wealthy. As of 2025, China holds over $760 billion in U.S. Treasury securities.

And what about agriculture? While Republicans talk a big game about free markets, U.S. agriculture relies heavily on government subsidies and international trade deals to survive. Each year, the federal government funnels over $30 billion in subsidies to farm businesses, including payments for crop insurance, disaster relief, and commodity programs—especially for large agribusinesses. These subsidies allow U.S. farmers to dump cheap corn, soybeans, and wheat into foreign markets, undercutting local farmers in developing nations and distorting global prices. It’s hardly a “free market” when your competition is backed by billions in government support.

Now Trump wants to double down: more tax cuts for the wealthy, paired with tariffs on the very imports that working-class Americans depend on. Ironically, it’s his own base—many of whom live in rural, agricultural communities that rely on export markets and affordable goods from places like Walmart—who will suffer most.

Even Congress is beginning to acknowledge what many already suspect: Trump is a lame duck. Not even Elon Musk’s billions can guarantee reelection for anyone.

The tariff war launched by Trump and Elon Musk has exposed just how vulnerable America is when the rest of the world decides to retaliate with tariffs of their own—or simply turn to other markets. Yes, the U.S. remains the world’s largest single-country economy, with a GDP of over $29 trillion, accounting for about 26% of global output. But we’re only 4% of the world’s population. The other 94% could choose to trade among themselves, sidestepping American tariffs and economic policies.

That’s not just theoretical. Around the globe, regional trade agreements and alliances are already being formed with the goal of minimizing reliance on the United States. Many countries now view America as an unreliable and unpredictable partner.

So, to the party of small government and free markets: be careful what you ask for. You just might get it—and then some.