How to Think of Trump’s Tariff Proposal

The Evening Campaign Update

(Because The Campaign Never Ends)

 

So, President Donald Trump spent all day Friday getting hammered by the fake news media, Democrats and many Republicans in congress, and leaders of other countries all over the world for his announcement Thursday afternoon that he plans to implement tariffs on imports of steel and aluminum next week.

If that reaction mix sounds familiar to you, it should.  It’s exactly the same reaction from a very similar mix of players he received last summer when he announced he was pulling the United States from the Paris Climate Accords.  Coincidence?  Not really, no.

Think about it:  What did President Trump say when he cancelled Barack Obama’s probably-illegal executive agreement that committed an entire country of 330 million people to the Paris Accords with no review or vote from congress?  He identified the Paris construct as nothing more than a wealth redistribution scheme that would suck trillions of dollars out of the U.S. economy and redistribute that wealth among the other nations who were signatories to the agreement.

In saying that, the President was 100% correct.  The Paris Accords have literally nothing to do with “saving the climate” by convincing countries to reduce their air emissions.  If it did, then why have none of the other nations who remain in the Accords met their emissions commitments under the deal?  That should give you a clue.

President Trump looks at the import/export equation on steel and aluminum in exactly the same terms.  He sees a situation in which a country like China gets to export its steel into the U.S. while paying no tariff at all, while at the same time levying a 50% tariff on U.S. steel coming into China, and sees that as just another scheme to redistribute U.S. wealth and jobs to another nation.  It’s the same concept.

The hilarious part of all of this is that so many members of congress and in the news media were shocked at the President’s Thursday announcement, just as almost all of the same people were shocked last summer about the President’s Paris decision.  Good lord, he promised on at least 100 occasions during the 2016 campaign to place tariffs on imports of all manner of goods, including steel and aluminum, if he were to win the election.

Since becoming President, Mr. Trump has been laser-focused on keeping the myriad promises he made during that campaign.  As many have detailed, he has already, just 14 months into his term in office, kept the great majority of those promises.  So why is anyone surprised in any way, shape or form that he is now going about keeping his promise to America’s steel and aluminum industries?  It would have actually been a real surprise had he not chosen to do so at some point soon.

I personally have mixed feelings on the tariff issue, and am not endorsing these tariffs just as I do not endorse the President’s recent implementation of tariffs on imports of solar panels.  But to Mr. Trump’s credit, he was completely open and honest about his plans to implement such tariffs during the campaign, and it is also to his personal credit that he remains committed to keeping his promises, whether I or anyone else agrees with him on the issue or not.

So, tariffs and Paris – there’s your analogy.  It even sort of rhymes.

[Addendum]  The other thing we must remember is that, with Donald Trump, literally EVERTHING is a negotiation.  This is not the end game in his mind – this is the start of a negotiation with China mainly, but with other countries as well. His goal is not to start a trade war, it is to change behaviors. He also very likely has in mind using these tariffs as an item to trade in exchange for something else down the road.

The setting of these tariffs is not the ending point for Mr. Trump, it is the starting point.

That is all.

Follow me on Twitter at @GDBlackmon

Today’s news moves at a faster pace than ever. Whatfinger.com is my go-to source for keeping up with all the latest events in real time.

5 thoughts on “How to Think of Trump’s Tariff Proposal

  1. Matthew Frihart - March 2, 2018

    FINALLY someone understand the point behind these tariffs. That being said, if we werent ALREADY in a trade war that we simply werent participating in, it would be different. But the rest of the world declared a defacto trade war on us decades ago and our politicians were too stupid to see it.

    This isnt the first shot fired in a trade war, its merely the first time we fired back, at all.

    1. Dogood - March 3, 2018

      China taxes its citizens and manufacturers for steel/aluminum imports to their disadvantage for the benefit of politically connected people invested in steel/aluminum manufacturing. That’s Chinese politicians engaging in a trade war/burden with its own citizens. Taxing US consumers and manufacturers for steel/aluminum imports to protect US steel and manufacturing interests, is two wrongs that doesn’t make a right. In fact, if the Chinese politicians and their rich friends in the steel/aluminum business, are taxing their citizens to make their steel/aluminum exports less expensive to buy than to produce, we should take advantage of their greed and buy it until they get tired of subsidizing us at which point we can start producing it again, for a profit.

      In the meantime, US manufacturers that use a lot of steel (autos, appliances, building materials) will find themselves less competitive globally, and will move their jobs overseas to avoid those tariffs to remain competitive. And there’s a lot more people doing those jobs than making steel/aluminum.

      Let’s not forget the fate of Republicans Smoot and Hawley, who implemented tariffs in the 1930s. The US GDP fell by 50% in 3 short years before their tariffs were repealed, and they also lost their seats in Congress.

  2. james peterson - March 3, 2018

    Abrogate all forms of the income tax. Restore indirect taxation. Immediately, America becomes the most competitive manufacturing country on the earth. And all that is accomplished sans any and all tariffs. The added benefit, which becomes the primary benefit, is to drive a stake into the heart of Marxist philosophy, which is to plunder the creative fecundity of each individual and reduce the person to a consumer/servant of the state, dependent and worshipful of the power to elevate ‘the ends justify the means’ from the first circle of hell to a sacrosanct, unassailable nostrum of state power. Marxist/Progressive ideology wars against allindividual and corporate creativity that is not beholding to any government bureaucracy or party.

  3. David Lee Foor Jr. - March 3, 2018

    Just when I was feeling good about holding my nose to vote for Trump he pulls a bonehead move like this. How is making every American pay more for goods produced with Steel and Aluminum a good thing? Answer it isn’t, there went that petty tax cut right out the window. This is being pushed by his commerce Secretary Wilbur Ross an Ex Steel executive who also happens to be a billionaire. Trump’s comment that trade wars are a good thing and we will win is absolutely ludicrous, I guess he knows little history about the Smoot – Hawley act that turned what should have been a recession into the great depression.

    1. MFG - March 3, 2018

      David, I live in the Midwest and work in manufacturing. I can tell you that steel and aluminum manufacturing is on life support. The die/mold industry as well and China is mainly to blame. Something MUST be done to level the playing field and Trump deserves allot of credit for even bringing it to our attention. I am glad I voted for Trump and would proudly cast that vote again.

Comments are closed.

Scroll to top
%d bloggers like this: