To former President Trump, tariffs are “the greatest thing ever invented.”
Why it matters: Trump has touted tariffs as a miraculous cure to just about every domestic and international strain, from war to child care to high grocery prices. But Trump also consistently claims tariffs are paid by countries exporting to the U.S., which isn’t actually how they work.
State of play: Trump has vowed to implement massive, sweeping tariffs — while Vice President Kamala Harris has pointed to warnings from economists that they would reawaken inflation.
- Still, as Trump likes to point out, President Biden did keep his China tariffs in place, and Harris hasn’t said she’d lift them.
The big picture: Trump is right that tariffs can raise revenue for the governments imposing them.
- But he’s wrong when he claims they only punish manufacturers abroad. They can also hurt U.S. companies and consumers.
What is a tariff?
A tariff is a form of tax on imported goods, designed to protect domestic companies from foreign […]
In our race to the bottom, those in power prefer to focus on price as the sole determinant of value. There are, however, many determinants of value. Some of those may be: job creation in the United States, dependence of the States or Federal Government on the producer of the product, etc….As the article states:
“For example, when the Biden administration called for higher steel tariffs this year it accused China of exporting steel at below-market prices to drive out competitors and “dominate” industries like shipbuilding.
The idea is that a tariff would make an imported product cost as much or more than similar goods produced domestically.
Tariffs generally tend to be lower in wealthier countries than in developing ones that have “more fragile industries,” according to a Council on Foreign Relations analysis.”
So the in example above “national security” was invoked to protect the United States from a distortion of market pricing practiced by the Chinese. Interestingly, “National Security” is the main value of the empire manager. It’s why, for example, you as an American will never be permitted to purchase a Chinese made electric vehicle, despite the price being lower. It’s also why the empire is happy to restrict your free speech rights and force the sale of Tik Tok to empire insiders, because the United States not longer can build the better mouse trap, or electric car or what have you. They talk a good game of “free trade” they’re not willing to actually practice it. What the empire really wants is total control, and they will twist any argument to get it. What should tariffs do? They should stimulate domestic production in those very areas to create American jobs, supporting American families vs shipping those jobs overseas to the lowest cost country. So think about the agenda behind those arguing against tariffs. There are many values to be balanced, not just cost. Think outside the box.