We’ve witnessed cultural, cultural differences, on topics, including, freedom of the press, healthcare / medical insurance, immigration, tax reform, etc, while, nearly daily, noticed, a continuing discussion, on what has been characterized, as the Russian Diagnosis. While most of these issues, have been mostly, divided, along political party lines, the most recent issue, which can be trade tariffs, has been one of the most divisive! Even though, members of both parties, have supported, President Trump’s approach, or opposed it, it’s important to recognize, there is no easy answer, and several underlying factors, to consider, both, in terms of being relevant/ useful, and sustainable. This guide will attempt to briefly examine, review, and discuss, 6 of them.
- Address unfair importing/ dumping: The matter of certain nations, using seemingly, unfair methods, to take advantage, and ditching their goods, at below – market prices, is not a new one. Most nations impose certain tariffs, either to raise needed funds, or to help their companies, which employ Americans, within this country. However, the matter, isn’t, black – and – white, however, rather many factors, and/ or ramifications, come into play. In today’s global market, many products utilize, goods, parts, components, and labour, provided in various areas of the world. In many cases, the so – called American firms, are actually less American, compared to foreign ones! There must be a fine – line, and an approach, which accounts, concept, with actions!
- Trade deficits: One of those 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 countries, in terms of importing American products, and potential, industries, at – risk, include, bourbon, denim jeans, etc.. Most tariff – supporters, even, concur, it is important, for these to be selective, so that you can have the most desired outcomes.
- 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 be isolationists! As opposed to denying reality. Wouldn’t it make more sense, to make sure we are ready, to lead, in this world!
- Often contributes to higher prices: When tariffs are imposed on things, such as aluminum, the result, includes increasing costs of producing beers and sodas (in aluminum cans), as well as impacting production costs for companies, such as Boeing (because plane exteriors are largely, made of aluminum), and cars. Why create raising prices, and risk inflation, hurting consumers and manufacturers, merely to flex America’s so – calledmuscle?
- International goodwill: Australia asserts, President Trump promised, there are no imposed tariffs, on steel, and, would not you think, they would feel, now, they can not trust this guy, or our state? Do not we want, more goodwill, rather than polarizing?
The problems related to tariffs, are complicated and challenging! This shouldn’t besomething, done, based on anger and/ or reflex, but, rather, a well – intended, effects – believed, concept and approach!