The Tariff Trap: Why Funding Health Programs Through Tariffs Harms Both Health and Democracy

ABSTRACT In 2025, the Trump Administration imposed significant tariffs on imports to the US as part of aggressive trade negotiations with other countries. Tariffs have important impacts on health that include increases in the prices that consumers and businesses pay for goods and potential damage to global supply chains. The Administration also pushed foreign governments to change their domestic policies on issues such as pharmaceutical pricing, claiming that other countries' policies are responsible for high US drug prices. Some US politicians celebrated new tariff revenues, suggesting that they could be used to support key health programs and welfare payments to individuals and farmers. We argue that funding health programs through tariffs has negative consequences for health and for democracy. US tariffs are likely to have harmful effects on the global economy and America's relationship with other countries. Tariff decisions are being determined via a process that is not fully democratic: the US Executive cannot redirect tariff revenue to fix policy problems at will without Congressional authorization, and absent Congressional scrutiny, this process is not transparent or accountable. And tariffs are a regressive tax, hurting people on the lowest incomes the most through increased prices. Even at 2025 levels, tariff revenues are unlikely to ever be a substantial, sustainable source of funding for key health programs and are instead likely to be targeted at core Trump supporters only.