That's simplistic thinking. Every economic transaction has at least two sides to it. When you implement a tariff, it increases the cost of that good to your own consumers, that is true, but it also makes it's local competition more cost competitive to the detriment of the good you taxed. So American cars are less competitive in Europe due to tariffs. That has a bad effect on American car companies. The goal is to decrease friction between countries as much as possible. The win-win scenario is zero tariffs between each country in a trade deal. However, when the status quo is every other country has high tariffs on US goods and US is the only country with low to no tariffs on all those countries, then what you have is a de facto US subsidy of foreign companies at the expense of US companies. Why do you think US companies ask for bailouts so often and GM was actually given one recently?
Tariffs are not optimal, but a responsible steward of our economy would first request that the opposite country in a trade deal lower their tariff to match the US rates. If they refused, then we'd need to set a deadline for compliance or raise our own to match theirs. It's only fair. Reciprocity levels the playing field so that companies can compete on the merits of the product and the efficiencies of the business, rather than on unfair subsidies by their government. So yes, tariffs create short term pain, but if used as a bargaining chip, they can lead to the long term win win that we all want, which is zero bilateral tariffs.
Your rigidity in thought on this issue is to the detriment of the American people, who are supposed to be served by the President of the US. Put it this way. If you truly believe the US should have the lowest tariffs and everyone else should tax the shit out of our imports into their country, then would you mind signing a deal where I buy your car for $50,000 and in return you buy it back from me for $250,000? If not, why not? I thought you just said keeping US tariffs low and the other country tariffs high is fair? If you truly believe that, then you would not hesitate to take the deal I just offered you. |
