Opinion: The Folly of Protectionist Tariffs - PressFrom - US
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OpinionThe Folly of Protectionist Tariffs

17:45  15 may  2019
17:45  15 may  2019 Source:   nationalreview.com

Trump’s Tariffs Only Work if Americans Pay Them

Trump’s Tariffs Only Work if Americans Pay Them This fact is inseparable from the president’s eagerness to impose them.

Protectionism is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations.

The punitive tariffs slapped on Canadian lumber exports into the U.S. exacerbate market volatility and put upward pressure on lumber prices. But most important, the tariffs have steeply increased domestic lumber producers’ profits. During the week ending May 11, the Random Lengths Framing Lumber

The Folly of Protectionist Tariffs© Mike Blake/Reuters A container ship arrives at Yusen Terminals at the Port of Los Angeles in Los Angeles, Calif., January 30, 2019.

Editor’s note: The opinions in this article are the author’s, as published by our content partner, and do not necessarily represent the views of MSN or Microsoft.

Conventional wisdom holds that it is the “elites” who are opposed to President Trump’s protectionist policies, including his recent ramp-up of tariffs on Chinese goods, and it is true, insofar as support for free trade increases with education and income. But the reality is that poor and working-class Americans will be hurt the most by Trump’s trade war.

Trump administration will delay auto tariffs for up to six months

Trump administration will delay auto tariffs for up to six months The White House had to decide by Saturday whether to slap tarifffs on autos over what it calls national security concerns.

This lesson provides a quantitative analysis of the effects of a protectionist tariff using linear supply and demand equations. We will examine the effects

The United States Tariff Act raised tariffs to historically high levels, adding strain to the international economic climate of the Great Depression. The Smoot-Hawley Tariff was the beginning of the end of major US protectionism in the 20th century. Beginning with the 1934 Reciprocal Trade Agreements

Trump’s insistence to the contrary notwithstanding, most of the cost of tariffs is paid by American consumers (through higher prices), not by the countries being sanctioned. For instance, it is estimated that the president’s latest round of tariffs on China will cost the American family an average of at least $767.

But that cost does not fall equally on poor and rich alike. To state the obvious, $767 means a lot more to a poor family struggling to pay its bills than it does to a wealthy one. Moreover, tariffs are more likely to fall on goods and services that the poor depend on, daily necessities of which they often lack a reserve supply.

Consider that among the companies that have announced they will be most impacted by the China tariffs are Walmart, Target, and Costco, none of which are known as the store of choice for global elites.

Republicans surrender to Trump’s China tariffs

Republicans surrender to Trump’s China tariffs GOP senators have no plans to even try to stop a trade war they oppose.

Republicans called protective tariffs “essential for the continued prosperity of the country” and Hoover, who said agriculture was “the most urgent What is apparent is that the bill sparked international outrage and a backlash. Canada and Europe reacted with a wave of protectionist tariffs that

While Economists generally agree that free trade creates more winners than loser, policymakers don't always agree, and turn to protectionism to shelter

Studies show that the lower your income is, the harder you’ll be hit by tariffs. Tariffs imposed by Trump last year have already cost poor families 0.33 percent of after-tax income, as opposed to 0.28 percent for wealthy families, and hurt single parents even more than they hurt families. Trump’s latest tariffs will likely be even more regressive. And while each new tariff’s impact is relatively small, they cumulatively take a big hit out of poor people’s income.

If that wasn’t bad enough, there is little doubt that an extended trade war with China will damage the broader American economy. Some economists estimate that Trump’s tariffs on Chinese goods and China’s retaliatory tariffs on American goods will cost the U.S. economy $62 billion in lost output. One research group, Oxford Economists, fears that if the trade war expands and tariffs on both sides are extended to the full range of traded goods, it could reduce U.S. GDP by more than 2 percent, and even push the U.S. economy into a recession. The Trade Partnership, an industry group, warns that anywhere from 900,000 to 2 million jobs could be at risk if the trade war drags on, roughly eight jobs lost for every job saved. Very few of those lost jobs are held by “elites.”

If we should have learned anything from history, it is that the free market does more to help people escape poverty and move up the economic ladder than the government ever could. On the other hand, government intervention in the market seldom helps the poor and struggling. And once one moves beyond the populist rhetoric, protectionism is no different: The very people whom the president says he is fighting for will end up on the losing end.

Trump says in 'no rush' for China trade deal, defends tariffs.
U.S. President Donald Trump said on Friday he was in "absolutely no rush" to finalize a trade agreement with China as negotiators from both countries prepared to continue talks in Washington, in a sign that discussions could go past this week. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.

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