Does the Bible have anything to say about tariffs and trade wars?

On 9 April, a US-driven measure came into force that has already created a shockwave in the world economy.

Tariffs, or taxes on products arriving from abroad, are intended as a way of protecting the country's industrial production, and therefore its workers, as well as increasing the government's income. But this protectionist measure, which clashes with the unwritten rules of world trade of recent decades, can drastically slow down not only economic investment (as shown by the fall of the stock markets) but also the capacity of families to consume.

To better understand the effects of a global trade war such as the one that could be unleashed and to find out if the Bible has anything to say about it, Evangelical Focus asked Moisés Contreras, an executive with long experience in international trade.

Contreras is a member of Compass Europe and chairs the working group on Financial Discipleship of the Spanish Evangelical Alliance.

Question. For those of us who are not experts in economics, it is difficult to measure the real impact of a trade war on daily life. Why is the current global debate on tariffs important and how will it affect us?

Answer. Since the dawn of industrial production, cross-border commercial transactions have been accompanied by the imposition of tariffs, initially of a general nature and later with increasing specificity according to the origin and application of the products.

These tariffs fulfil two fundamental purposes: the provision of tax revenue for the State, compensating for the lower tax collection due to the possible decrease in national production, and the protection of domestic industry by making imported goods more expensive.

Although initially tariffs represent an economic burden for consumers of foreign products, in the long term they can stimulate local investment, both national and foreign, generating a competitive advantage for the domestic market.

The current debate is on the fairness and relevance of these measures, also considering their use as instruments of pressure in the context of trade disputes between nations.

Q. Does the Bible talk about tariffs, taxes and international trade? What image is given of them?

A. The genesis of tax systems goes back to ancient times, with the first documented manifestations being found in the book of Genesis. There, the patriarch Joseph implemented a system of collecting 20% of agricultural production, setting a precedent for the role of tax as a tool for state financing.

Israel's strategic location as a centre for trade between continents suggests the existence of a fiscal policy to regulate these transactions, although the considerable tax burden imposed by Solomon had significant political repercussions, such as the loss of the throne by his son and the subsequent division of the kingdom.

Nevertheless, the biblical teaching is clear regarding the obligation of citizens to comply with fiscal laws, as Jesus expressed (Mark 12:17) and Paul reaffirmed (Romans 13:1-7).

From a Christian perspective, the payment of taxes can be interpreted as a response to divine providence, a recognition of the material blessings received.

Praying for the wisdom and righteousness of those in government in the management of these resources is a fundamental duty for believers.

Q. In recent decades, Europe has developed a common market with the EU and other regions that have similar projects. Facilitating imports and exports has been seen as a way of promoting peace between countries. Why is this?

A. The European Economic Community (now the European Union) represents a significant model in the search for fiscal equity, particularly in relation to trade between its member states. This framework of cooperation has proven to be an effective instrument for strengthening industrial competitiveness at a global level and for incentivising the domestic production of essential goods and services.

But a fundamental issue that emerges in the analysis of EU trade policy is fairness in the application of tariffs to countries that trade with the bloc, both in imports and exports.

This balance, reflected in the trade balance, is a crucial indicator of the fairness and sustainability of the European Union's economic relations with the rest of the world.

Q. Trump's isolationist policy is causing a trade earthquake. But could it have political consequences as well and even provoke new armed conflicts?

A. To understand the trade policy implemented by the administration of the President of the United States, it is essential to analyse the underlying motivations that drove these actions, framed within the American constitutional powers that grant the executive the capacity to establish fiscal regulations.

The image of President Trump presenting a graph of the trade balance between the United States and the rest of the world has become a symbol of his focus on this issue. In particular, the trade relationship with the European Union reveals a deficit for the United States.

[destacate]“The Trump administration's policy could be interpreted as a disruptive strategy, possibly avoided by previous administrations, aimed at generating global alarm”[/destacate]Eurostat data for 2024 indicates that, although the United States was the main destination for EU goods exports (20.6%), it was the second largest supplier of imports to the EU (13.7%). This imbalance is a significant factor in the Trump administration's strategy to reshape trade flows.

The strategy implemented to redress this imbalance is based, in part, on increasing tariffs. This is a protectionist measure that seeks to favour the consumption of domestic products and, simultaneously, to encourage foreign companies to establish production plants within US territory, thus generating local employment and investment.

The Trump administration's policy could be interpreted as a disruptive strategy, possibly avoided by previous administrations, aimed at generating global alarm. The objective behind it would be to encourage the negotiation of bilateral agreements that establish trade rules perceived as more equitable for the United States in its relations with other nations.

Tariff policies, while they can generate trade tensions, do not necessarily constitute the genesis of armed conflicts. Rather, they can be interpreted as stimuli for nations to review and strengthen their commercial competitiveness, reducing dependence on foreign products. The case of China illustrates this dynamic, having managed to position its products as essential elements in various global production chains, from food additives to electronic components.

Given this situation, it is pertinent to ask ourselves what strategy Europe should adopt to mitigate its commercial dependence. It is hoped that the leaders of the European Union recognise this need as a priority objective in the short term, implementing policies that promote the autonomy and competitiveness of the bloc in the global economic scenario.

Q. As a Christian, what values accepted by all countries would you like to see in international trade? What biblical principles would help us all?

A. As believers, we aspire to see values that promote human dignity and collective well-being reflected in international trade. Some of these values, with universal resonance, are based on essential biblical principles:

Justice and equity are pillars of the biblical message (Micah 6:8). In the context of international trade, this translates into the need for balanced fiscal policies.

[destacate]“Justice and equity are pillars of the biblical message. In the context of international trade, this translates into the need for balanced fiscal policies”[/destacate]It is imperative to support the most vulnerable nations, not only through the import of their products, but also through initiatives that strengthen their local industrial competitiveness. This reflects the biblical principle of helping others and lifting up the fallen.

The Word of God exhorts us to be diligent in all our labours (Proverbs 10:4). Christians in the business world should be examples of professionalism and efficiency, contributing to the competitiveness of their companies and, therefore, to the improvement of the trade balance of their nations. This diligence is a practical expression of honouring work and being good stewards of talents and resources.

The principle of subjection to the authorities, including the tax authorities, is clearly established in Romans 13:5-7: ‘Therefore it is necessary to submit, not only because of the punishment, but also for reasons of conscience. For this reason you also pay taxes, for they are God's servants, attending to this very thing. Pay to everyone what you owe: to the tax collector, tax; to the one who collects the levy, levy; to the one who shows respect, respect; to the one who honours, honour.

This biblical mandate calls us to fiscal responsibility and compliance with tax laws, recognising the legitimate role of the authorities in the administration of society.

The Christian faith impels us to be agents of transformation in all areas of society, including international trade. By promoting values such as fairness, diligence and fiscal responsibility, based on biblical principles, we can contribute to the construction of a more just and prosperous trading system that reflects the character of God.

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