Tariff's
I'd like to put a question out to the audience of Trump supporters and get a discussion going about his tariff policy.
Our 3 largest import relationships are with Mexico, China and Canada. Each of which imports ~ half a trillion dollars worth of goods and services to the US.
Despite making a tremendous amount of noise about tariffs in the campaign, that was one area in which nothing was done amid the onslaught of executive orders on Day 1. He did allude to the possibility of 25% tariffs on Mexico and Canada as early as Feb 1.
Tariffs bring with them a multitude of consequences. From an "America First" perspective, they make American made products more competitive in the American market and they create jobs in America for the people who might be making them. On the other hand, they increase the cost of products, particularly those made in Mexico where labor is simply much cheaper than American labor. Tariffs are inherently inflationary. They increase the price to US wholesalers. They increase the demand for American workers which leads to increases in American wages embedded in the cost of products they make.
So .... my question is what's more important to you ? If you have to choose between inflation and tariffs, which policy objective is nearer and dearer to you ?
If you don't agree that tariffs are inflationary, let's discuss and do your best to explain why not.
2 Replies
Tariff's
What is the objective that tariff's accomplish that you value the most ?
Personally, I think for national security reasons, it's wise to reduce reliance on foreign supply chains and ensure that we retain the capacity to make what we need here in America.
But I also think it's wise to have stable neighbors here in North America and that's hard with a government system that swaps out presidents every four years and is subject to potentially abrupt and profound changes.
I guess some of this is connected to the respective vision of the US relationship to other countries. Some prefer a more isolationist approach and some a more integrated approach.
Do you envision a self-sufficient and independent America or an empire which dictates through force ?
