Some Products That Benefit From Protective Tariffs

Feb 27, 2025

Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest.

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We live in an era of free trade, except when we don't. The recent furor over trade deals between the U.S. and China and between the U.S. and the rest of the Americas made it appear that the U.S. went all-in on free trade until Donald J. Trump became president in 2017. The reality is, there have always been plenty of exceptions to free trade. Furthermore, protective barriers like tariffs may harm some industries or companies while benefitting others.

Generally, these tariffs are intended to protect critical American industries from foreign competition or to prevent dumping of cheap goods in the U.S. by foreign manufacturers, or both.

In February 2025, President Trump placed an additional 10% tariff on imports from China and was initially planning on enacting a 25% tariff on Mexico and Canada via an executive order. There was a 30 pause after Canada and Mexico raised concerns. In exchange, both countries agreed to enhance border enforcement measures.

Here are some products that actually benefit from protective tariffs.

Most paper clips sold in the U.S. are still manufactured domestically, largely due to a 127% tariff on Chinese-manufactured paper clips. The tariff has been in effect since the 1990s when American paper clip manufacturers started facing tough competition from cheaper-priced Chinese imports. The manufacturers successfully argued that their Chinese rivals were "dumping" paper clips on the American market, meaning they were selling at a loss in order to drive domestic manufacturers out of business.

The tuna industry is subject to a complex array of import quotas, tariffs, and quality standards, which has led to some creative workarounds.

For example, canned tuna manufactured and sold in the U.S. is protected by a 35% tariff against Ecuador’s cannery imports, which has been in place since 2002. However, American canned tuna manufacturers outsource the cleaning of the fish to countries with cheap labor and then ship it back for domestic operations in California and Georgia to package the final product.

This takes advantage of a loophole that deems the product to be domestically produced if it is packaged in the U.S.

Tobacco is big business in the U.S., and American tariffs have protected the industry since the Great Depression. Some tobacco products imported into the U.S. face taxes as high as 350%.

However, tariffs go two ways. In 2018, in retaliation for U.S. trade policies, China announced a 25% increase in its tariffs on a list of 100 U.S. products, including cigars and cigarettes.

That was not welcome news in North Carolina, which exported more than $156 million in tobacco products to China in 2017.

Sneakers produced by New Balance, the last large shoemaker to have its entire production process in the U.S., are protected by a 20% tariff on foreign shoe imports.

New Balance is the last big shoemaker to make its product in the U.S.

This is part of the reason why other major brands such as Nike and Adidas have higher prices. Since they create many of their final products outside the U.S., they pay the tariff that protects domestic suppliers such as New Balance, and they pass those costs through to the customer.

Products like paper clips and sneakers are protected by tariffs to shield American manufacturers from being undercut by cheaper foreign imports, especially when those imports are sold at a loss (known as "dumping").

Tariffs typically increase the price of imported goods, which can lead to higher prices for consumers. For example, U.S. consumers may pay more for products like sneakers and paper clips because the tariffs raise the cost of foreign-made goods, making domestic options relatively more affordable.

Trade wars and retaliatory tariffs can create uncertainty for businesses that rely on international trade. For example, when the U.S. imposes tariffs, other countries may retaliate by increasing tariffs on U.S. products. This can hurt American exporters and disrupt supply chains, impacting industries such as tobacco, agriculture, and manufacturing.

Protective tariffs can provide critical support for U.S. industries by shielding them from unfair foreign competition, such as price dumping. However, while they help domestic manufacturers, they can also increase consumer prices and lead to trade tensions. The balance between protectionism and free trade remains a key issue in global commerce.

Associated Press. "Trump Agrees to Pause Tariffs on Canada and Mexico After They Pledge to Boost Border Enforcement."

International Trade Commission. "Harmonized Tariff Schedule: Paper Clips."

Federal Register. "Certain Paper Clips From the People’s Republic of China: Continuation of Antidumping Duty Order," Page 1.

United States Code. "Chapter 20 — Andean Trade Preference."

International Trade Commission. "Harmonized Tariff Schedule 2025 HTS Revision 1." Download required.

Congressional Research Service. "Retaliatory Tariffs and U.S. Agriculture," Page 5.

North Caroline Digital Collections. "Annual Trade Report 2017."

International Trade Commission. "Harmonized Tariff Schedule: Shoes."

New Balance. "New Balance And Manufacturing In the U.S."

Footwear Distributors and Retailers of America. "Shoe Importers Push to Cut U.S. Tariffs."