For and Against: Catholics Take Sides on Tariffs

Tariffs, duties imposed on imported goods, have been causing global uncertainty in recent months, with President Trump employing them periodically. Courts have even recently weighed in to consider their constitutionality.

Catholics, too, have been evaluating them. Like other forms of taxation, tariffs do not present a black-and-white moral issue, but this does not mean the Church’s social teaching does not touch upon them. In an increasingly interconnected world, trade constitutes a key element of international relations and, therefore, solidarity among nations. Given our global economy, we can speak of obligations of justice between nations that touch upon trade and the role of tariffs.

The Compendium of the Social Doctrine of the Church offers a brief overview of trade that provides some general parameters on tariffs.

Today more than ever, international trade — if properly oriented — promotes development and can create new employment possibilities and provide useful resources. The Church’s social doctrine has time and again called attention to aberrations in the system of international trade, which often, owing to protectionist policies, discriminates against products coming from poorer countries and hinders the growth of industrial activity in and the transfer of technology to these countries. The continuing deterioration in terms of the exchange of raw materials and the widening of the gap between rich and poor countries has prompted the social Magisterium to point out the importance of ethical criteria that should form the basis of international economic relations: the pursuit of the common good and the universal destination of goods; equity in trade relationships; and attention to the rights and needs of the poor in policies concerning trade and international cooperation. (364).

In short, human dignity forms the key interpretative tool for evaluating the morality of political and economic decisions. Most often, these decisions are prudential in nature, having to be weighed in context for their strengths and weaknesses. The benefits of tariffs, therefore, can be evaluated on the basis of whether they promote the common good and respect human dignity.

They have been quite controversial throughout American history, causing regional tension as Northern manufacturers took a protectionist stance and Southern ports sought stronger overseas trade. In more recent history, the United States has thought it could build friendships and promote democracy through trade. This has created unintended consequences with imbalances between trading partners, the theft of technology, and the use of exploitative labor in foreign factories. Jobs have gone overseas, and a decline in expertise in some sectors has followed; we have become vulnerable to disruptions in the supply chain, dependent on foreign nations for vital needs.

Catholics can take a stand for and against the use of tariffs to address these difficulties, and we can find examples of advocates on both sides of the issue. Politics and economics are meant to strengthen communion, as citizens achieve the common good together and promote peace with neighboring nations. In this pursuit, a nation may need to withdraw from economic unity with others, deciding to decrease or even cease trade with another country for a host of legitimate reasons. Others may disagree, contending the actions cause more harm than good, even deeming them unjust and immoral if they inflict harm on another nation without legitimate cause.

Let’s look at some positions Catholics have taken for and against increasing tariffs.

Gavin Asheden at The Catholic Herald has argued that “Trump’s tariffs are a beacon of Catholic social teaching,” because they address an urgent practical necessity. He argues:

Is Trump fully guided by Catholic faith or vision? No. But has he accorded it a privileged position among the ideological and ethical resources the administration may draw on? Although some Catholics express disappointment with certain ethical priorities of the administration, the answer must be ‘yes.’ Should Trump fail in his attempt to rebalance tariff barriers between the US and its trading partners, the consequences could be catastrophic. The existing global order based on globalisation is already faltering, poised for further breakdown that could trigger civilisational collapse. The poor are always the earliest and most vulnerable casualties. Trump, therefore, might represent their only genuine economic hope.

Honing in on the key issue of human dignity, Father Stephen Pitts, S.J., in an interview with America Magazine, addresses “What Catholic Social Teaching Says About Trump’s Tariffs.” He explains:

For the Catholic social teaching side, it’s hard to see how imposing tariffs on the developing world respects human dignity. Two specific encyclicals deal with tariffs directly. First, in the wake of decolonization in the 1960s, Pope Paul VI’s ‘Populorum Progressio’ emphasizes the importance of just trade relationships (Nos. 58-61). For unequal countries, the market logic of fair trade is not enough. Just as C.S.T. supports minimum wages as a way to ensure that workers are paid enough to respect their dignity, C.S.T. supports just prices in trade relationships to ensure that countries receive enough income to respect their dignity.

The apostolate Catholic Answers conveys the disputed nature of the topic simply by offering two different answers on the expediency of tariffs. First, John Clarke takes the perspective that “free trade—meaning trade unobstructed by governmental restrictions—is the natural condition of man.” He views the imposition of tariffs as sparking an unnecessary trade war and offers three arguments for why we’d be better off without them: “First, free trade prevents war. . . . Second, tariffs are taxes against the innocent.” And third, they are unnecessary, because they are “predicated on faulty numbers” and fears about American manufacturing. Clarke notes, “Last year, America produced about $2.5 trillion worth of manufactured goods — ranking it second-highest of all the countries on Earth.”

On the other hand, John Martignoni defends Trump’s tariffs as a means toward “freer and more equitable trade conditions for all countries involved. … I believe that the United States has, for the last several decades, been in a downward spiral morally, spiritually, culturally, militarily and (particularly pertinent to this article) economically. And I believe that one of the major factors contributing to the economic decline has been our international trade deficit.”

Let’s hope that healthy, civil debate will continue as the United States finds ways to address problems concerning international trade without damaging solidarity with other nations, all while creating better economic conditions that strengthen human dignity for those most in need.

(Dr. Staudt’s column is syndicated by the Denver Catholic, the official publication of the Archdiocese of Denver. )