Over the past nine months, the Trump administration has imposed sweeping new tariffs on imports from most of the world. This includes key products, such as steel and aluminum. Starting next month, more tariffs are promised on semiconductors, pharmaceuticals, furniture, and other products.

These measures have frayed our alliances, disrupted supply chains, and increased costs for U.S. firms and consumers. To be clear, these tariffs are effectively a tax increase for businesses and families. The Budget Lab at Yale estimates the 2025 tariffs will increase prices by 1.7 percent in the short run, the equivalent of an average per household income loss of $2,400 by year’s end.

These tariffs have generated a windfall of new tax revenues that deserve deliberate and strategic use. To understand the scale, consider the following: before the 2025 tariff surge, the U.S. average effective tariff rate stood at 2.4 percent. Estimates are that by the end of September, consumers faced an average effective........

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