Are Tariffs Job Protectors or Global Trade Killers? Examining the Debate

Global trade hit a record $33 trillion in 2024, according to the United Nations Conference on Trade and Development (UNCTAD). However, this milestone comes as the international trading landscape faces growing instability, with major economic powers imposing or threatening new tariffs. The resulting uncertainty has raised concerns about the future of multilateral trade and the potential for slowed growth, particularly in developing countries.

UNCTAD’s March Global Trade Update emphasized that while tariffs are a long-standing tool in international trade, their unpredictable application by major economies is undermining the global system. Luz Maria de la Mora, Director of UNCTAD’s International Trade Division, noted that tariffs are not inherently harmful. “The issue is the uncertainty that results from big economic players ripping up the playbook of international trade rules,” she explained. De la Mora underscored the historical role of agreements like GATT and the WTO in stabilizing tariff policies and providing clear rules for all participants.

Although often criticized, tariffs serve several purposes, especially in developing economies. Governments use them to protect emerging industries or generate revenue for public services such as healthcare and education. However, de la Mora acknowledged the tradeoff: such protection can lead to higher costs for consumers and deter market competition.

The global trade environment has also been influenced by past agreements like the North American Free Trade Agreement (NAFTA), in which de la Mora played a key negotiating role for Mexico. She said NAFTA had a transformative impact on Mexico’s manufacturing and agriculture sectors. Still, she stressed the importance of accompanying trade liberalization with policies that support displaced workers.

The current trend of unilateral trade decisions by major players—including the U.S., China, and the EU—has led to uncertainty that could dampen investment and economic activity worldwide. Developing countries, in particular, stand to lose the most. Many rely heavily on exports and need a reliable global system to ensure predictable pricing and access to markets. “When Member States make unilateral decisions, it can create a slowdown in investment, trade, economic growth, and job creation,” de la Mora warned.

In contrast to multilateral concerns, former President Donald Trump continues to defend the use of tariffs as a strategic economic tool. He credits his administration’s first-term policies with driving investment in domestic manufacturing and reducing U.S. reliance on imported goods. A 2024 economic analysis indicated that a global 10% tariff could grow the U.S. economy by $728 billion and generate 2.8 million new jobs. Additionally, a 2023 U.S. International Trade Commission report found that Trump-era tariffs on over $300 billion in imports spurred reshoring efforts while having minimal downstream effects on consumer prices.

According to the White House, industry data also suggests the tariffs had significant sectoral impacts. From 2017 to 2019, the top five U.S. steel producers more than doubled their annual investments, increasing from $1.5 billion to $4.2 billion. Thousands of jobs were created, particularly in regions like Minnesota, where the iron ore industry saw substantial gains. Supporters argue that the tariffs strengthened domestic supply chains and encouraged consumers to purchase American-made goods. Former Treasury Secretary Janet Yellen previously stated that these tariffs had no meaningful impact on consumer prices—an assertion that has been used to counter inflation-related concerns often raised by critics of protectionist policies.

Only time will tell if President Trump’s latest rounds of tariffs will have the effect he intends, and undoubtedly this will remain a topic of intense debate across the country.

Article by multiple RFHC contributors, based upon information from a UN News interview Luz Maria de la Mora, the Director of the International Trade Division at UNCTAD and information released by the White House.

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