The Trouble With Donald Trump's Tariffs
Start writing a post
Politics

The Trouble With Donald Trump's Tariffs

President Trump's plan to instate tariffs on steel and aluminum will be bad for the economy.

401
The Trouble With Donald Trump's Tariffs
Public Domain Image

To start this article off on a controversial note: yes, a trade war is a bad thing.

On the first day of this month, President Donald Trump announced that the United States would slap high tariffs on imported steel (at a rate of 25%) and aluminum (10%). The markets reacted badly as investors began to wonder if the president might be making good on his promise to reverse liberal trade policies implemented by the last three chief executives.

Trump’s logic seems sound at first glance. The U.S. has a wide trade deficit, the difference between imports and exports, with the world, $566 billion, well over half of which is with China. We have a deficit of goods, such as cars, oil, and agricultural product, with both Canada and Mexico, our biggest trade partners, though we have a small surplus of services like tourism and banking. China has a habit of stealing intellectual property from American firms, making money spent on innovation wasteful.

Still, these are hardly reasons to create tension on the global stage. If you assume the trade deficit matters, and if you assume the trade deficit matters in a bad way (both unpopular opinions among economists), there is little that an individual, even the president, can do about it. Trade deficits are caused by a variety of factors like a large national debt (not helped by the tax bill, signed by Trump, that will throw $1.5 trillion out of the national coffers this year) and other countries’ spending habits. Moreover, Americans might prefer imports, such as German BMWs and French Burgundy, to American-made products.

This is all technically theoretical. Perhaps a practical example will illustrate why tariffs are a bad thing. In 2002, President George W. Bush imposed tariffs on steel. The fees were supposed to last for three years, but Bush ended them at the beginning of the next year in response to the $30 billion, 13,000-job hit the economy took -- and other nations hadn’t even put up retaliatory tariffs in response yet. Many of Bush’s top economic advisers are now warning Trump not to repeat their mistakes.

If the U.S. is so concerned it is being robbed by other countries, there is an outlet for these complaints: the World Trade Organization (WTO), of which America is a founding member. The WTO acts as a sort of trade court, where states can bring disputes to be resolved. Instead of trying to go it alone, President Trump should use the existing system of rules, set up by the U.S. specifically to give it an advantage. Trump, for all his talk of putting America first, seems to be deliberately kicking its industries in the knee for the sake of being able to say he tried to help.

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
the beatles
Wikipedia Commons

For as long as I can remember, I have been listening to The Beatles. Every year, my mom would appropriately blast “Birthday” on anyone’s birthday. I knew all of the words to “Back In The U.S.S.R” by the time I was 5 (Even though I had no idea what or where the U.S.S.R was). I grew up with John, Paul, George, and Ringo instead Justin, JC, Joey, Chris and Lance (I had to google N*SYNC to remember their names). The highlight of my short life was Paul McCartney in concert twice. I’m not someone to “fangirl” but those days I fangirled hard. The music of The Beatles has gotten me through everything. Their songs have brought me more joy, peace, and comfort. I can listen to them in any situation and find what I need. Here are the best lyrics from The Beatles for every and any occasion.

Keep Reading...Show less
Being Invisible The Best Super Power

The best superpower ever? Being invisible of course. Imagine just being able to go from seen to unseen on a dime. Who wouldn't want to have the opportunity to be invisible? Superman and Batman have nothing on being invisible with their superhero abilities. Here are some things that you could do while being invisible, because being invisible can benefit your social life too.

Keep Reading...Show less
houses under green sky
Photo by Alev Takil on Unsplash

Small towns certainly have their pros and cons. Many people who grow up in small towns find themselves counting the days until they get to escape their roots and plant new ones in bigger, "better" places. And that's fine. I'd be lying if I said I hadn't thought those same thoughts before too. We all have, but they say it's important to remember where you came from. When I think about where I come from, I can't help having an overwhelming feeling of gratitude for my roots. Being from a small town has taught me so many important lessons that I will carry with me for the rest of my life.

Keep Reading...Show less
​a woman sitting at a table having a coffee
nappy.co

I can't say "thank you" enough to express how grateful I am for you coming into my life. You have made such a huge impact on my life. I would not be the person I am today without you and I know that you will keep inspiring me to become an even better version of myself.

Keep Reading...Show less
Student Life

Waitlisted for a College Class? Here's What to Do!

Dealing with the inevitable realities of college life.

101356
college students waiting in a long line in the hallway
StableDiffusion

Course registration at college can be a big hassle and is almost never talked about. Classes you want to take fill up before you get a chance to register. You might change your mind about a class you want to take and must struggle to find another class to fit in the same time period. You also have to make sure no classes clash by time. Like I said, it's a big hassle.

This semester, I was waitlisted for two classes. Most people in this situation, especially first years, freak out because they don't know what to do. Here is what you should do when this happens.

Keep Reading...Show less

Subscribe to Our Newsletter

Facebook Comments