President Trump’s so-called “trade war” has gotten a lot of media attention. Tariffs raise prices for consumers, as illustrated by the recent price increase for washing machines, a good that recently received tariff protection. Tariffs on raw materials raise costs for U.S. manufacturers, which cuts into their profits and reduces their competitiveness. Second quarter 2018 earnings for General Motors decreased by three percent due in part to higher aluminum and steel prices resulting from tariffs. The auto maker recently said that proposed tariffs on auto parts might result in layoffs and reduced investment. Tariffs also close markets to domestic producers if foreign countries retaliate. Recently, the European Union retaliated with tariffs on U.S. agriculture products and the U.S. government has pledged $12 billion of taxpayer money to farmers to partially offset the loss of overseas markets after China.