Imports taxed from Mexico and China could see double-digit tariffs
This all comes from the concerns about how our manufacturing of goods here in this country has diminished over the last few decades. Manufacturing companies have moved their businesses to cheaper countries in order to make more profit. President Trump has said enough is enough. I agree!
We have all been used to dirt cheap products from these countries with no thought to what the cost to our own nation would be. We have lost much of our once great power of being a nation that makes everything it needs. We are now a consumer nation, we buy everything we need from other countries. Much to their delight.
President Trump has said that something has to change with our trade deals with these countries, “But it has to be something because our country and our trade and our deals and most importantly our jobs are going to hell.”
How Do Tariffs on Goods Actually Work
“The idea behind imposing tariffs is to make American companies more competitive with their foreign counterparts. As those companies prosper, the thinking goes, they can hire more workers and pay their employees better. Those workers, in turn, would have more money to spend, and that helps spread those dollars around the economy more broadly.” Louis Jacobsen of Political Fact
These countries have been allowed to have trade deficits with the US with no complaints from us for years. Now President Trump is standing up for our great nation and letting them know that we are not going to idly stand by and take it anymore. Just the threat of tariffs should be enough to make these countries more negotiable to closing the gap before tariffs are imposed.
There is always the possibility that these nations will not play nice and tariffs will be imposed. We as consumers will see this as a price increase of the goods we purchase. But, if we stop purchasing these goods from other countries (with higher prices now due to tariffs), we can now manufacture these items here and sell them here at possibly a reduced price while adding jobs to our economy.
These are all unforeseen consequences of tariffs. Supply chains will also be disrupted if these tariffs take place because even just supplies for items manufactured here, that would be taxed, would cause issues across companies supply chain. Could this cause a trade war? Yes, quite possibly. But something needs to be done and soon.
What do you think of this? Should tariffs be imposed?