Are Tariffs A Good Idea?

[Ringo]

 

[Flopper]

Tariffs hinder economic growth. They raise costs for both consumers and businesses, disrupt supply chains, and distort market efficiency. Worse yet, they often provoke retaliatory tariffs, escalating trade tensions and deepening the economic strain.

History has repeatedly shown that while trade wars can ignite rapidly, resolving them is a slow, difficult process. If current trends continue, we’re likely facing a prolonged period of sluggish growth and elevated prices—an outcome no one can afford to ignore.

 

[Flopper]

Country X exports some “stuff” for which there is a demand in America. The government of Country X heavily subsidizes that industry. So, we impose a tariff on its import into America.

The U.S. businesses which make use of that “stuff” pay that tariff. Those businesses pass the higher cost thereof on to the ultimate consumers. It’s a hidden tax on the American people.

In that view, tariffs aren’t a good way to go. For us.

On the other hand, that higher cost might make it possible for American producers of the “stuff” to fairly compete with the foreign nation (and it’s unfair subsidies). That could yield more jobs at home.

Assume the US puts a tariff on imported well made cheap widgets from China which raises the price in the US so the US consumer buys more of the less desirable US widgets. But wait. A Mexican compony is producing a great widget at a low price and attracting US consumers so the US puts a tariff on Mexican made widgets pushing US consumers back to American made widgets. But wait. It turns out that the American Widget Company is a wholly own subsidiary of a Chinese company who is now cornering the market on widget thanks to help of US goverment bureaucrats interfering with the market.

 

[Flopper]

Trump’s tariffs are a short-term fix with long-term pain. They raise prices for American consumers, hurt U.S. exporters through retaliation, and disrupt global supply chains. Instead of bringing jobs back, they often push companies to other countries—or toward automation. In the end, tariffs slow growth, weaken our global competitiveness, and leave everyday Americans paying the price.

 

[JoeB131]

 

[BackAgain]

Assume the US puts a tariff on imported well made cheap widgets from China which raises the price in the US so the US consumer buys more of the less desirable US widgets. But wait. A Mexican compony is producing a great widget at a low price and attracting US consumers so the US puts a tariff on Mexican made widgets pushing US consumers back to American made widgets. But wait. It turns out that the American Widget Company is a wholly own subsidiary of a Chinese company who is now cornering the market on widget thanks to help of US goverment bureaucrats interfering with the market.

Spend time worrying about it.

I think we all realize that plans often get changed when things go “agang aglee.”

So what?

I’ve noted before that I’m not a fan of tariffs, generally. But leveling the international-trade playing field could prove beneficial for us.

Let’s just say that part of the reason a tariff based system was largely abandoned by America may have been a part of a larger philosophy to be fair to the less fortunate nations. Yep. We have been sharing our own wealth.

 

[Flopper]

Spend time worrying about it.

I think we all realize that plans often get changed when things go “agang aglee.”

So what?

I’ve noted before that I’m not a fan of tariffs, generally. But leveling the international-trade playing field could prove beneficial for us.

Let’s just say that part of the reason a tariff based system was largely abandoned by America may have been a part of a larger philosophy to be fair to the less fortunate nations. Yep. We have been sharing our own wealth.

Throughout most of 19th America tariffs were used to protect industries both large and small. It wasn't till about 1933, that Congress with support from both sides of isle, passed a tariff that bill that decrease tariffs in hopes of increasing trade. However, it wasn't till after WII, that trade opened up and tariffs fell but as nations recovered, tariffs rose.