For decades, the Republican Party prided itself on being the party of economic growth, free markets, and limited government. At its heart was a commitment to the fundamental principles championed by Ronald Reagan—free and fair trade, international cooperation, and an understanding that tariffs were nothing more than a hidden tax on American consumers. But today, under the leadership of Donald Trump, the GOP has abandoned these principles, embracing an economic nationalism that betrays everything Reagan stood for.
This week, Trump’s latest round of tariffs on Canada, Mexico, China, and the European Union mark yet another nail in the coffin of traditional conservatism. Once the party of economic dynamism, the GOP has become the party of protectionism, trade wars, and self-inflicted economic wounds. And Reagan himself would have been appalled.
Reagan’s Warning: Tariffs Hurt America
It is worth remembering that Reagan was not just skeptical of tariffs—he outright condemned them. In his April 25, 1987, radio address, Reagan warned the nation about the dangers of protectionism, recalling how the Smoot-Hawley Tariff of 1930 deepened the Great Depression and triggered a worldwide trade war. His words were clear:
“At first, when someone says, ‘Let’s impose tariffs on foreign imports,’ it looks like they’re doing the patriotic thing by protecting American products and jobs. And sometimes for a short while it works—but only for a short time.”
Reagan understood what Trump does not: tariffs are taxes on American consumers. They may sound tough, but in reality, they increase prices on goods, hurt small businesses, and provoke retaliation from our trading partners. What Reagan saw as economic suicide, Trump presents as a victory.
When Reagan imposed temporary tariffs—such as on Japanese semiconductors in 1987—he did so reluctantly and with the clear goal of removing them as soon as possible. He never saw tariffs as a long-term strategy but rather as a means of enforcing fair trade agreements. Unlike Trump, who uses tariffs as a blunt weapon in an ideological war, Reagan understood that trade wars destroy economic growth.
The Republican Party’s Transformation: From Reagan to Trump
Under Reagan, the Republican Party understood economics. It was the party of Milton Friedman and free enterprise. It believed in lower taxes, fewer regulations, and expanded trade opportunities. This was the foundation of Reagan’s economic miracle—a period of prosperity that saw GDP growth average over 4% per year and an explosion of American exports.
Fast forward to 2025, and the GOP is unrecognizable. Trump’s obsession with tariffs is not just bad economics—it is a betrayal of core conservative values. The modern Republican Party has replaced economic freedom with economic control, choosing protectionism over prosperity.
Let’s look at the damage Trump’s tariffs will cause:
- Higher prices for American consumers: A 25% tariff on goods from Canada, Mexico, and the EU will mean higher costs for everything from cars to groceries.
- Job losses in export industries: More than 5 million American jobs rely directly on exports. Retaliatory tariffs from Europe and China will hurt industries like agriculture, technology, and manufacturing.
- Supply chain chaos: Small businesses depend on affordable imported goods. With higher costs, many will be forced to lay off workers or shut down entirely.
This is not conservative policy. It is big-government economic intervention, no different from what Democrats pushed in the 1930s with disastrous results.
Trump’s Protectionism is Economic Illiteracy
For a party that spent decades warning about government overreach and taxation, it is stunning to see today’s Republicans cheer for tariffs—a direct tax on American consumers. Reagan’s wisdom still holds true:
“High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars. The result is more and more tariffs, higher and higher trade barriers, and less and less competition.”
And yet, that is exactly where we are heading. Trump’s latest tariffs have already sparked threats of retaliation from the EU and China, which will only hurt American businesses further.
Even Colombia is now imposing tariffs on U.S. goods, citing Washington’s aggressive trade policies. How did the party of free trade manage to alienate even our closest allies? The answer is clear: Trump’s policies are driven by ego, not economics.
Reagan’s Legacy, Trump’s Destruction
Reagan believed in American leadership through strength, cooperation, and open markets. Trump’s GOP, in contrast, is building walls—not just at the border, but around the economy. The party of free enterprise has turned into the party of economic isolation.
Reagan won the Cold War by embracing global trade and spreading American capitalism. Trump, meanwhile, is handing China an economic advantage by driving U.S. allies away and making American goods less competitive.
The question conservatives must ask themselves is this: What happened to the Republican Party?
- How did the party of Reagan become the party of tariffs?
- How did the party of growth become the party of economic retreat?
- How did the party of small government become the party of state-controlled trade?
The answer is simple: Republicans have lost their way. They have abandoned Reagan’s vision in favor of Trump’s short-sighted populism. And unless they wake up soon, they will destroy the very economy they claim to protect.
It’s time for true conservatives to take back the GOP. It’s time to reject tariffs, embrace free markets, and return to the principles that made America an economic powerhouse. Reagan understood this. Why can’t today’s Republicans?
President Reagan’s Radio Address to the Nation on Free and Fair Trade from Camp David, Maryland on April 25, 1987 Creator(s): President (1981-1989 : Reagan). White House Television Office. 1/20/1981-1/20/1989 (Most Recent) Series: Video Recordings, 1/20/1981 – 1/20/1989 Collection: Records of the White House Television Office (WHTV) (Reagan Administration), 1/20/1981 – 1/20/1989 Transcript: https://www.reaganlibrary.gov/researc…
Production Date: 4/25/1987
Access Restriction(s):Unrestricted Use
Restriction(s):Unrestricted
Contact(s): Ronald Reagan Library (LP-RR), 40 Presidential Drive, Simi Valley, CA 93065-0600 Phone: 800-410-8354, Fax: 805-577-4074, Email: reagan.library@nara.gov National Archives Identifier:77443170 https://catalog.archives.gov/id/77443170
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