Walk-Ins Welcome with Bridget Phetasy E387. Why Tariffs Are Crushing Small Business | Scott Lincicome - Walk-Ins Welcome
Apr 23, 2026
Scott Lincicome, trade expert at the Cato Institute and adjunct at Duke Law, explains how modern tariffs actually work and who pays for them. He covers why Trump’s tariffs were harmful but not apocalyptic, how exemptions and rollout softened impact, why small e-commerce sellers got blindsided by customs bills, and how protectionism often helps big firms, not consumers.
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Why Tariffs Weren't Catastrophic Nationally
- Trump's tariffs were unlikely to cause economic Armageddon because the US is a $30 trillion services-led economy with low trade-to-GDP exposure.
- Scott Lincicome notes tariffs still harm specific groups, but cutting a few fingers doesn't kill the body politic.
Promises Versus Reality Lowered Tariff Impact
- The worst predictions assumed Trump would fully implement dramatic tariffs, but actual policy was much narrower and slower.
- Lincicome highlights exemptions and carve-outs (AI data centers, smartphones) cut the effective rate to under half of initial proposals.
Limit Exceptions To Free Trade Narrowly
- Keep national security and slave-labor exceptions narrow and evidence-based to avoid cronyism.
- Lincicome warns broad exceptions invite companies to lobby for protection citing vague security or IP concerns.
