How to avoid paying customs duties? Have a friend in Washington.

American businesses he bore the burden tariffs he wandered by former President Donald Trump, but having the right friends allowed some to avoid higher costs.

Politically connected companies – particularly those that donated to Republican Party candidates, including Trump – had a greater chance of success by asking the government for exemptions from imports that would normally be subject to tariffs. new report sums up. This is a discovery that seems particularly important now because Trump’s campaign is based on the promise of a pay raise more tariffs if he returns to the White House, while some conservatives see a potential second Trump term as an opportunity reward friends and punish enemies.

In the study, four researchers reviewed 7,015 waiver applications that companies filed with the Office of the U.S. Trade Representative. Of those, only 1,022 were approved, but applications from companies that reported greater lobbying spending were more likely to be approved. Companies with political action committees that made campaign contributions to Republicans were even more likely to receive exceptions, while companies that donated to Democrats were more likely to be denied exemptions.

“Our findings show that politicians not only use waivers to reward their supporters, but also withhold waivers to punish supporters of their opponents,” said Jesus Salas, an associate professor of finance at Lehigh University and one of the study’s authors. statement. “The process of granting tariff exemptions functioned as a highly effective spoils system, allowing the administration of the day to reward its political friends and punish its enemies.”

How Reason has already reported, dismissal process Created when Trump raised tariffs on a wide range of imports in 2018, it allowed companies to avoid paying tariffs if they could show that a particular imported product could not be obtained from sources outside China or if the tariffs would significantly harm importing companies. The system was a black box provided by officials at USTR great freedom in issuing assessmentswithout congressional oversight and lack of due process for companies whose applications were rejected.

From the beginning it seemed that there would be a process of exemption from customs duties ripe for political influence. A new report seems to confirm that this is what happened.

Raising trade barriers, including tariffs, gives Washington bureaucrats more control over the private business decisions of U.S. companies. Naturally, some companies react to this solution by trying to influence bureaucrats. Rather than “draining the swamp” or limiting the federal government’s regulatory power, Trump’s trade policy only deepens the swamp and encourages more lobbying, backroom deal-making, and influence peddling.

For conservatives who favor higher tariffs, these results may be seen as features rather than bugs. Indeed, the so-called economic nationalism is often associated with this impulse. New Right exercise power without regard to justice. This is a worldview contrary to free markets and limited government.

If Trump wins re-election and it works in his imposition plan new tariffs on almost all imports – he is threatened 20 percent “universal tariff” and up to 60% tariffs on goods from China – the costs will fall overwhelmingly on American consumers and businesses. It’s an agreement that could give Trump trade officials even more freedom to deliver special favors.