Fair Trade, Not Retaliation: A Catholic Social Justice Perspective on Tariffs, Solidarity, and the Common Good

Instead of policies that prioritize profits at the expense of workers or vulnerable communities, the Catholic Church calls for fair trade. Fair trade seeks to ensure that all parties — especially marginalized communities — receive fair compensation and that workers' rights are respected. From a Catholic social justice teaching perspective, tariffs against Canada and Mexico, and the potential imposition of retaliatory tariffs raises concerns. Here’s how these tariffs can be seen as conflicting with these principles:

Catholic social teaching emphasizes solidarity — the idea that all people are interconnected, and we are called to work together to promote the well-being of all, particularly the most vulnerable. The imposition of retaliatory tariffs disrupts international cooperation and fosters an “us vs. them” mentality, which undermines global solidarity.  This mentality has repeatedly led to negative consequences for the United States, both domestically and internationally. For example, the 2018-2019 U.S.-China trade war led to retaliatory tariffs on Nebraska’s key agricultural exports, including soybeans, pork, and beef. China was Nebraska’s largest export market for soybeans, but after tariffs were imposed, exports plummeted, forcing farmers to sell at lower prices or leave fields unplanted. Some small family farms went bankrupt due to lost revenue and increased uncertainty. Instead of benefiting from trade protection, Nebraska farmers became collateral damage in international disputes.

Recently used “Liberation Day” rhetoric suggests a celebratory stance on division and economic isolationism rather than fostering a more united global economy. Catholic teaching calls for seeking common ground and working for the common good rather than engaging in divisive policies that widen global inequality.

The Church advocates for trade policies that promote peace and mutual respect among nations. Tariffs, particularly those aimed at punishing specific countries or industries, can worsen existing geopolitical tensions and make international cooperation more difficult. For example, in 2018, a 25% tariff was imposed on steel and a 10% tariff on aluminum imports from countries including Canada, Mexico, and the European Union under the claim of national security concerns. These tariffs were meant to revive the U.S. steel industry by reducing reliance on foreign imports. However, many industries that rely on steel and aluminum to manufacture products saw costs skyrocket. Instead of protecting American jobs, these tariffs led to job losses, increased prices, and economic instability for U.S. industries and workers, particularly in agriculture and manufacturing-heavy states like Nebraska, Iowa, and Wisconsin.

Catholic Social Justice teaches that we must prioritize the needs of the most vulnerable members of society in our decision-making. Tariffs, particularly those targeting developing nations such as Venezuela, directly hurts the poorest population who depend on affordable goods. For example, by imposing tariffs on countries that buy oil or gas from Venezuela, the U.S. risks escalating economic hardship for already struggling nations and their people, increasing poverty and harming vulnerable populations.

The dignity of work and the rights of workers must be protected. Nebraska exports approximately $2.1 billion worth of grain products to China annually. In retaliation to U.S. tariffs, China has implemented tariffs ranging from 10% to 15% on U.S. agricultural products, including soybeans, pork, beef, chicken, wheat, and corn. This escalation threatens to reduce the competitiveness of Nebraska's exports, potentially leading to decreased demand and lower prices for these commodities (https://www.wowt.com/2025/03/10/nebraska-farmers-limbo-amid-chinese-tariffs-against-us-farm-products/)

From a Catholic social justice standpoint, the imposition of retaliatory tariffs, especially in the manner described, runs counter to fundamental teachings such as solidarity, the promotion of the common good and peace, prioritizing the needs of the most vulnerable, and the protection of the dignity of work and the rights of workers. Tariffs create divisions, harm vulnerable communities, and undermine peace efforts, all of which are contrary to the values of compassion, cooperation, and justice that lie at the heart of Catholic social teaching. The Church calls for policies that respect the dignity of workers, promote fairness, and foster a global economy that prioritizes the well-being of all, especially the marginalized.

CST Emphasis: In 2015, Pope Francis said, "The economy should serve people, not the other way around." When evaluating trade policies, fair trade principles—which focus on human dignity, environmental sustainability, and mutual benefit — should take precedence over short-term economic gain.”