Tariffs distort market signals and function similarly to subsidies. They make goods or resources that were previously unprofitable to produce locally seem viable. However, this isn't a true gain in efficiency through innovation or technology. It’s an artificial shift driven by state intervention.

When we imported goods from countries that were more efficient at producing them, we could allocate our own limited resources to areas where we held a comparative advantage. State intervention in the market disrupts this natural flow and leads to capital misallocation, hindering true economic progress.