President Donald Trump has promised throughout his presidency to revive American manufacturing by slapping punishing tariffs on foreign competition. But a new study from the US Federal Reserve suggests that his efforts have backfired — and that the manufacturing sector is worse off than it was before the president began his protectionist trade policy.I have to wonder if anyone truly believed that Trump's haphazard tariffs would help American's?
I mean he went after steel, aluminum and other "manufacturing" materials and components that American companies need to build high quality, high tech equipment that we then export around the world.
So not only did he make our equipment more expensive, he also pissed off the countries where 70% of my employers product was sold into. The result of course is that I have only traveled overseas twice in 2019, not my usual 6 times. (ie sales down)
Now if he had worked with our allies and honored TPP, maybe something productive could have happened with regard to China... Instead it sounds like the agreement will be weak if it ever comes.
I am not anti-tariff, but I am against Trump's haphazard approach.
4 comments:
What do you think John? How is your dads farm doing?
Thankfully he rents out the land and he has enough other investments to offset a lower income in one area.
I feel more for the younger folks who have bought the expensive land and are now having a harder time making payments given the trade wars, flooding, etc.
Soybean price history
Thankfully their yield has increased with better seeds.
Oddly enough, tariffs are one of the policies I disagree with least. But we must understand that a protected economy will be a less vital economy. It will not compete well in the global economy, and in overall terms, it will be poorer. It will favor old and established business, at the expense of new businesses. Trump likes it because he is in the real estate and land wasn't invented recently.
--Hiram
Hiram,
You certainly are puzzling... I often wonder what you actually do believe.
You question the wisdom of tariffs because they are protectionist / limiting in nature...
And yet you historically have supported unions, labor contracts, etc that are protectionist / limiting in nature...
Personally I think tariffs are simply a means to an end. The question is how well are they used to achieve that end.
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