Tariffs keep going up. Stock values keep falling.
President Donald Trump has said repeatedly that Americans can expect economic pain but will experience benefit over time.
Senator Shelley Moore Capito agrees.
“There is pain associated with it, no doubt,” Capito told West Virginia reporters during a news briefing.
“But I think in the end, I think our American workers are going to be in a better spot, and I think the consumer will be too.”
The United States has launched into rounds of tariffs against countries that are usually its trading partners, including neighboring Canada and Mexico. In turn, those countries have retaliated with tariffs of their own.
Tariffs are taxes charged on goods imported from other countries. The companies that bring the foreign goods into the country pay the tax to the government, with the cost ultimately passed on to consumers.
Volatility over the effect of the aggressive tariffs on trade has caused major declines in stock markets.
The Standard and Poor’s 500, a market index tracking the stock performance of 500 of the largest companies in the United States, officially hit a “correction” milestone.
A correction is a market decline that is more than 10%, but less than 20%.
Trump has said the tariffs will pay off.
The president has offered several reasons to justify the tariffs.
He has described concerns over border policy and fentanyl distribution. He has characterized trade with other countries as a playing field that, in his view, has not benefited Americans. And he has suggested the leverage of tariffs can revitalize American manufacturing.
Responding earlier this week on Fox Business to the possibility of a recession, Trump said this is a bumpy period.
“There is a period of transition, because what we’re doing is very big. We’re bringing wealth back to America. There are always periods of… it takes a little time. It takes a little time. But I think it should be great for us,” he said.
More recently, Trump said he would hold steadfast to the tariffs even as the stock market roils.
“I’m not going to bend at all,” Trump said when asked about his tariff plans by reporters at the White House.
Trump added, “There’ll be a little disruption, but it won’t be very long.”
The U.S. Chamber of Commerce, which represents business groups, has said tariffs are not the answer. Ten days ago, the national business association said “tariffs will only raise prices and increase the economic pain being felt by everyday Americans across the country.”
The National Farmers Union has said American farmers and ranchers bear the brunt of tariffs. “Without a clear plan, family farmers will once again be left to bear the burden of decisions beyond their control, and eventually, so will consumers,” President Rob Larew, a West Virginian, said nine days ago.
Capito, responding to a question from reporter Reshad Hudson of the Nexstar television stations, said it will require time for the president’s strategy to work out. The reporter was asking about the most recent tariff threat of 200% on some goods from Europe: “Are you concerned that the cost will be passed down to the American people?”
“Well, I think the President has said from the beginning — when he campaigned, when he served the last time and as he moved forward into his first several weeks of his presidency — that he believes that the American workers are being disadvantaged because of tariffs that are imposed on us from other countries,” Capito said.
“We want a fair playing field. We want something that doesn’t disadvantage our American products or our American workers. So that’s the frame of work that he is dealing with.”
The senator acknowledged that the uncertainty is worrying people.
“And I share that concern simply because it’s a ping pong effect. You’re going one way and then you get retaliatory tariff from Europe. You know, companies can’t plan.
“There’s a lot of supply chain issues, particularly as you go through Canada and Mexico with the United States. And these are all our friends, and we need to have friendly trading policies with our friends.”
Canada is West Virginia’s largest export partner. In 2023, Canada was the destination for $181 million in West Virginia exports. China was next, with $36.3 million in West Virginia exports, followed by Mexico with $21.2 million.
Republicans traditionally have favored free markets and free trade.
Trump signed a revised trade agreement with Mexico and Canada in 2020, then calling it a historic win for American workers.
Capito said the president needs more time to work on the current trade situation.
“So I think the President is in a deep negotiation on these, and I think what you’ll see is him asking for some more patience to sort of ride this out and see where it ends up, so that our American products are not disadvantaged worldwide, and they’re being sold into every market.
“So I see us in the middle of a process right now.”