Mike Pence Calls For 'Free Trade With Free Nations' And Says Tariffs Ultimately Hurt U.S. Businesses And Shoppers

Former Vice President Mike Pence is stepping up his criticism of President Donald Trump‘s sweeping tariff policies, arguing they are hurting American manufacturers and driving up costs for consumers.

Pence Points To Ford’s $800 Million Tariff Bill

In a recent post on X, Pence said, “American Companies and American Consumers Pay the Cost of American Tariffs. Free Trade with Free Nations,” highlighting Ford Motor’s F recent struggles. Despite building more vehicles in the U.S. than any other automaker, Ford reported paying $800 million in tariff costs during Q2, contributing to its first quarterly loss since 2023. The company estimates the tariffs will reduce annual profits by about $3 billion.

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Ford CEO Jim Farley told Bloomberg the automaker is in constant talks with the Trump administration to undo the “disadvantage” the tariffs have created. Similar costs have hit General Motors GM, which lost over $1 billion in the same quarter. 

A Constitutional And Historical Argument

Pence has also framed the issue as a matter of constitutional authority. “You might remember that it was tariffs on tea that went into the Boston Harbor that helped initiate the American Revolution,” he told CBS News. He argued that the Constitution makes clear that only Congress has the power to impose tariffs.

Pence also said the real threat to the economy "doesn't flow as much to the Fed" as it does to Trump's tariff policies. He criticized the use of broad-based tariffs on "friend and foe alike," calling them "border taxes" that are paid "by American businesses, ultimately by American consumers."

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Pence recalled private conversations with Trump where he warned that tariffs were taxes Americans would pay. "The one thing I know for sure is that people outside the country don't pay tariffs," he said. He also described Trump as "at his heart… a protectionist" drawn to a "19th century policy" of across-the-board tariffs.

Warning Against Alienating Allies

In a Bloomberg Television interview last month, Pence compared Trump's trade approach to "dismissing your front line in a football game" by targeting U.S. allies while trying to pressure China. "Free trade with free nations should be the backstop," he said, warning that the U.S. needs Japan, South Korea, Australia and the EU to maintain united economic pressure on Beijing.

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Pence said Trump is "driving toward a long-term change in industrial policy" built on "permanent unilateral tariff barriers" that he, as a "free-market conservative," cannot support. He argued that coordinated allied action proved effective before, pointing to the 2020 phase-one trade deal with China.

Pence's break with his former running mate underscores a deeper debate over America's role in global trade. While Trump frames tariffs as a tool to protect domestic jobs and repatriate manufacturing, Pence insists they amount to a tax that risks economic harm at home and weakens alliances abroad.

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Image: Shutterstock

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