Posted on 03/08/2016 7:31:07 AM PST by reaganaut1
Donald Trump has pitched himself to voters as a proud protectionist, intent on punishing the Chinese companies that he says are hurting American workers. In his January meeting with the editorial board of the New York Times, he said he would impose a 45 percent tariff on all products imported from China.
Luckily, we don’t have to guess how such a tariff would impact the economy, because the Obama administration attempted a version of Trump’s idea seven years ago. It did not go well.
“It’s basically a real-world case study on what would happen if we imposed 35 percent tariffs on Chinese imports,” says Scott Lincicome, an international trade attorney and adjunct fellow at the Cato Institute. “In this case, we saw huge costs for consumers, gains by other foreign competitors, and almost no gains for American workers, even under the most generous of assumptions.”
By 2009, the United States was importing tires from China at a rate of about 50 million per year. The United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial, and Service Workers International Union complained to the Obama administration that there was a “large, rapid, and continuing” increase in the number of Chinese-made tires entering American markets. In September of that year, Obama approved relief for domestic producers by increasing tariffs on most new tire imports for three years.
...
Economists Gary Clyde Hufbauer and Sean Lowry note that the number of Americans employed in tire manufacturing increased from 50,800 in September 2009 to 52,000 in September 2011. If all 1,200 jobs were attributed to the tariff — an exceedingly generous assumption — they calculate that Obama’s move could be credited with saving or creating $48 million of additional worker income and purchasing power.
(Excerpt) Read more at nationalreview.com ...
It was tried in early or mid 1900’s and did not work.
‘Kinda sorta’ like raising the minimum wage.
This is a bargaining tactic. We can not get product into China. Or if you do it takes years. The equation must change.
Higher tariffs probably make some sense in certain cases. Not so in others. But one thing is for sure, this country and its workers have been getting repeatedly rolled by “free trade” agreements for over thirty years now.
Tariffs, tariffs, tariffs. ILLEGALS, ILLEGALS, ILLEGALS. MUSLIMS, MUSLIMS, MUSLIMS.... which is worse? Really?
We don’t have “Free Trade” we have “Managed Trade”.
That was a viable position during the Cold War, it is anachronistic now. It time to quit clinging to the dogams of the past and re-examine trade policy
America is losing the international trade war. We are getting cheap products, but our buying power is decreasing. The full effects of this exporting of manufacturing jobs will take a full generation to feel full impact. By then, our middle class will be gone.
Politicians have enriched themselves by yielding to international lobbyist. Trump wont play that game.
Day after day after day the NR shows it’s pro establishment anti voter stripes!
Tariffs tend to not work when it is focused on a specific industry. A broad sweeping series of tariffs covering a broad array of industries, would be likely to be more effective.
Don’t call it a tariff. Call it a “security tax”. Use the money to upgrade our ports, railroads and other infrastructure.
Great assortment of pics.
What a bunch of loser idiots.
genetic fallacy
The problem with the National Review is that they took an extreme turn into dementia lland!
NR is useless.
Trump has said repeatedly that he would never really have to impose a tariff on China. He said just announcing it would motivate them to stop manipulating their currency. Trump is not even elected yet and China and Mexico are already squawking.
Trump’s plan is to re-negotiate all of our trade deals so we get a better deal. Then he plans to couple that with lowering the coporate tax to 15% and letting all the offshore money come back for a one time 10% tax. If that does not get us going again nothing will.
The Japanese are the most homogeneous people on the planet, very fond of “consensus building” until you hit a nerve.
Then, instant change.
Trump should try this — “Hey Japan, for every car you ship to America, you first accept an equal number of American cars into Japan.” Pass a law requiring that every taxi cab must be an American car if you must.
Increased tariffs need to be combined with reduced regulation and taxation on American soil. The idea is not to punish other Countries, but to make it easier for these items to be manufactured on American soil, rather than abroad. The same can be said about taxes: Reducing taxes in itself does not bring prosperity. Reduced taxes must be combined with reduced spending.
This assumes a static, rather than dynamic, response to the tariffs.
National Review
Subject: Trump
Action: Round File
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.