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Monday, May 12, 2025
Trump Caves again
So we still need to pay an extra 30% to the US government to buy our low cost products from China.
And Trump apparently supports government price controls?
For me, the basic problem with Trump and tariffs is that I just don't know what the goal of the president's policy is. Tariffs can be used in many different and contradictory ways. The current view is to view tariffs as the cost of admission to American markets. He views America as a subscription based store like Costco or Sam's Club. And he doesn't seem to have much of a problem if other countries view their home markets in the same way. Essentially, trade policy is China policy, and the result of what the president has done so far seems to be that both countries imp-ose tariffs at rates that are more designed to profit from trade, as oppose to hinder or even block trade. In effect, they are disguised tax increases for us, and only incidentally, for them.--Hiram
I am not sure if that is quite correct. A LONG TIME ago we discussed in detail. If US citizens want clean air, higher wages, etc... Maybe they should be pressured to buy products built here?
Trump is using tariffs as a disguised form of tax increase a sales tax in this case. He talks gleefully about how much money they raise. That is okay perhaps, but his party runs on a total commitment not to raise taxes and tariffs violate that. Not only do they violate that promise, it is being done in a way that puts it outside the political process. These are tax increases that haven't been voted on in Congress, just imposed by presidential order. In historical terms, this is taxation without representation.==Hiram
Tariffs are a form of tax, but that doesn't have to be their purpose. They can be used to create trade barriers, forcing manufacturers to produce their products here, as John suggests. In real terms, those aren't taxes because the rates are so high, little or no business is done to which they apply. They don't raise revenue. Trump suggests that he will use tariffs as trade barriers providing an incentive for domestic manufacturing, but what he does undermines that. In order to make long range investment decisions to build here, companies need assurances that the tariffs will remain in place, protecting their businesses indefinitely. But Trump has already abandoned his "Liberation Day" tariffs completely destroying any incentive effect they may have for making long term commitments.--Hiram
And Trump apparently supports government price controls? 
For me, the basic problem with Trump and tariffs is that I just don't know what the goal of the president's policy is. Tariffs can be used in many different and contradictory ways. The current view is to view tariffs as the cost of admission to American markets. He views America as a subscription based store like Costco or Sam's Club. And he doesn't seem to have much of a problem if other countries view their home markets in the same way. Essentially, trade policy is China policy, and the result of what the president has done so far seems to be that both countries imp-ose tariffs at rates that are more designed to profit from trade, as oppose to hinder or even block trade. In effect, they are disguised tax increases for us, and only incidentally, for them.--Hiram
ReplyDeleteI am not sure if that is quite correct. A LONG TIME ago we discussed in detail. If US citizens want clean air, higher wages, etc... Maybe they should be pressured to buy products built here?
ReplyDeleteLiberal Hypocrisy
https://give2attain.blogspot.com/2016/04/policy-choices-and-hypocracy.html
Trump is using tariffs as a disguised form of tax increase a sales tax in this case. He talks gleefully about how much money they raise. That is okay perhaps, but his party runs on a total commitment not to raise taxes and tariffs violate that. Not only do they violate that promise, it is being done in a way that puts it outside the political process. These are tax increases that haven't been voted on in Congress, just imposed by presidential order. In historical terms, this is taxation without representation.==Hiram
ReplyDeleteTariffs are a form of tax, but that doesn't have to be their purpose. They can be used to create trade barriers, forcing manufacturers to produce their products here, as John suggests. In real terms, those aren't taxes because the rates are so high, little or no business is done to which they apply. They don't raise revenue. Trump suggests that he will use tariffs as trade barriers providing an incentive for domestic manufacturing, but what he does undermines that. In order to make long range investment decisions to build here, companies need assurances that the tariffs will remain in place, protecting their businesses indefinitely. But Trump has already abandoned his "Liberation Day" tariffs completely destroying any incentive effect they may have for making long term commitments.--Hiram
ReplyDeleteI agree with some of what Trump is doing... But I definitely disagree with how he is doing it... :-)
ReplyDelete