What We Talk About When We Talk About Tariffs
With apologies to Raymond Carver.
My friend Kevin Maddox was talking. Kevin Maddox makes a fortune selling novelty pickleball T-shirts on Etsy, and sometimes that gives him the right.
โThe kind of tariffs Iโm talking about, the other country pays,โ he said.
The four of us, my wife, Debra, and Kevinโs wife, Bridget, were sitting around his kitchen table drinking. On the table a case of Truly sat cooling on a bed of ice.
Debra lifted a can from the ice and cracked it open. โThatโs not how tariffs work though,โ she said.
โMy God,โ Kevin said, a bit unsteady. โDonโt be silly.โ
It would be night soon. I took a drink and held the can up to the dusky diluted sunlight seeping through the window: Wild Berry. My favorite flavor. The truth is, I thought Kevin was wrong. But by then our talk had grown old, and we were so young. What did the four of us, what did anyone know about taxes levied by governments?
โWho can say what a tariff is and what it isnโt?โ I said.
โI can,โ Debra said. โA tariff is a fee or duty paid by the company that imports products to the US Treasury,โ she said.
โClose,โ Bridget said. โItโs actually the other country that pays.โ
โThatโs right,โ Kevin said, placing his hand on Bridgetโs shoulder.
I found myself nodding along.
โListen,โ Debra said slowly. She looked around the table at us as if we werenโt her friends but strangers, as if we were no longer speaking the same language. โThatโs not how tariffs work. Tariffs are paid by American companies.โ
โNo,โ Kevin said. โCanada and China and Mexico will pay the tariffs. They will suffer. And tariffs will lower the price for American consumers.โ
Debra placed her hands flat on the table as if she were trying to soak in the last rays of the sun before they vanished. She leaned forward. A vein on her neck pulsed and trembled like a river about to run over.
โKevin,โ she said, โwhere do you buy your T-shirts from?โ
โChina,โ he said, grinning.
โAs a Chinese importer, you will then have to pay a tariff.โ
โThatโs the difference between you and me. I donโt consider myself an importer.โ
โAll right,โ Debra said, her voice straining. โYou buy your T-shirts from China, slap on a pickleball pun, then you sell them, right?โ
โThatโs right,โ he said.
โNo matter how you define a tariff, no matter what you think it is, the price of the T-shirts you purchase will skyrocket.โ
Kevin finished his Truly and placed the can sideways on the table. โIf that happens, Iโll just raise the price,โ he said.
โThen heโll be making more money,โ Bridget said, beaming.
โYes, but everything else, the livestock, the vehicles, oil, will also go up in price. Americans will pay more for food, housing, vehicles, everything.โ
Outside, a dog began barking. The light in the kitchen was so sparse I could hardly see.
โBut I feel tariffs will bring prices down,โ Kevin said. He lay his hand flat on his chest, partially covering the quote, I DINK, THEREFORE I AM, on his T-shirt. โI feel it here, in my heart. And what could be more important?โ
Debra raised her hands and shook her head. She never spoke of tariffs again. What was there anyone could possibly say?