Tariffs have been a key tool in U.S. economic policy since the 18th century, originally used to protect American industries and fund the government. Their role diminished after WWII with the rise of free trade, but tariffs have recently resurfaced amid rising protectionism. Trump’s proposed sweeping tariffs—60% on China, 20% globally—aim to boost domestic production but risk trade retaliation and higher consumer costs. Harris, in contrast, supports more targeted tariffs, focused on national security and strategic industries, continuing Biden’s cautious approach. These policies have significant implications for dividends: companies reliant on global trade may cut payouts amid higher costs and uncertainty, while those in less affected sectors like utilities may remain attractive to income-focused investors. Ultimately, both parties reflect a shift toward economic nationalism, raising critical questions about balancing domestic protection with global cooperation.

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