The article argues that President Trump's tariffs are a necessary measure to protect American workers and businesses from unfair trade practices by other nations. It refutes the claim that tariffs always harm consumers, citing historical examples of tariffs stimulating economic growth. The author contends that tariffs will level the playing field for American exporters and incentivize other countries to adopt more favorable trade policies.
The market analysts and so-called economists panicking over President Donald Trump’s tariffs must be at least somewhat relieved that he’s agreed to pause the ones he wants to impose on Mexico. But they shouldn’t have been worried in the first place, because their fears are misplaced. Trump understands the harsh reality of the situation: other nations have exploited the U.S. for decades, and it’s long past time America fought back. In fact, Trump’s actions will benefit Americans greatly.
Many European nations use schemes like value added taxes to impose implicit tariffs on American exports. Furthermore, countries like Germany and Japan still have tariffs that were put in place after World War II to protect industries being rebuilt following the conflict. The status quo has completely changed, and there’s no reason for these nations to continue penalizing American farmers and factoryworkers.
Consider Canada, whose leaders are ranting about Trump standing up for Americans. If Canada agrees to eliminate its own tariffs and NTBs, then American exporters, like dairy farmers, will be more competitive and will sell more product in Canada. That means doing more business and employing more Americans.
In short, Trump holds all the cards. And he knows it. But it’s not just a matter of getting other nations to fully open their markets to American exporters; it’s about the trade deficit, which can’t go on forever. Economic textbooks sometimes explain away the deficit by pointing out that individuals often have steep trade deficits with retail stores, like Walmart or Amazon, and that doesn’t cause the individual to go bankrupt.
America’s long-standing deficit has been funded by the Federal Reserve, which has effectively been printing money and sending it around the world to finance our elephantine trade deficits for decades. This process has devalued the dollar over the years, so that Americans’ money doesn’t go as far as it used to—a phenomenon we call inflation. But the inflationary impact of our trade deficits has been blunted by the dollar’s status as the world’s reserve currency.
TRADE WARS TARIFFS GLOBALIZATION ECONOMIC GROWTH AMERICAN WORKERS
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