We’ve witnessed partisan, political differences, on topics, such as, freedom of the press, health care/ medical insurance, immigration, tax reform, etc, while, virtually every day, noticed, a continuing discussion, on which has been characterized, as the Russian Investigation. While most of these problems, have been predominantly, divided, along political party lines, the latest issue, which is trade tariffs, has been amongst the most divisive! Despite the fact that, members of both parties, have supported, President Trump’s strategy, or opposed it, it’s important to recognize, there is no simple answer, and several underlying factors, to consider, both, in terms of being relevant/ useful, and sustainable. This article will try to briefly analyze, review, and discuss, 6 of these.
- Address unfair importing/ dumping: The issue of particular nations, using seemingly, unfair techniques, to take advantage, and ditching their goods, at below – market rates, isn’t a new one. However, the issue, is not, black – and – white, however, rather many factors, and/ or effects, come into play. In today’s global market, many products use, products, components, components, and labor, provided in various parts of the world. By way of instance, a number of foreign auto manufacturers, construct their cars, in local, American assembly plants. Oftentimes, the so – called American companies, are now less American, compared to foreign ones! There has to be a fine – line, and an approach, which accounts, concept, with activities!
- Trade deficits: Among the reasons, voiced, by President Trump, for implementing tariffs on steel and aluminum, is putting America first, and lowering the trade deficits. However, this ignores certain complexities, such as the consequences. These include the high threat of retaliation by foreign nations, regarding importing American products, and potential, businesses, at – risk, include, bourbon, denim jeans, etc.. Most tariff – supporters, even, agree, it is important, for these to be selective, so that you can have the most desired outcomes.
- International conflicts: Already, states, from allies, such as, Australia, to members of the European Union (EU), ro Canada and Mexico, to countries such as China and South Korea, have threatened, to retaliate, if these tariffs, are imposed!
- Globalism is reality: Trump’s slogans, including, Make America Great Again, and America First, imply , he has some level of revisionist history, yearning for his perception, of days – ago! Fortunately, or unfortunately, it’s unrealistic, to confront the reality, today’s world, is one of globalism, and we cannot, nor should we, strive to become isolationists! Rather than denying reality. Would not it make more sense, to ensure we’re prepared, to lead, in this world!
- Often results in higher prices: When tariffs are levied on items, such as aluminum, the outcome, includes increasing costs of manufacturing beers and sodas (in aluminum cans), in addition to affecting production costs for companies, such as Boeing (because plane exteriors are largely, made from aluminum), and cars.
- International goodwill: Australia asserts, President Trump promised, there would be no imposed tariffs, on steel, and, wouldn’t you believe, they would feel, today , they can’t trust this guy, or our state? Don’t we want, more goodwill, rather than polarizing?
The issues related to tariffs, are complicated and challenging! This should not besomething, done, based on anger and/ or reflex, but, instead, a well – planned, effects – believed, concept and approach!