Trump's Use Of Tariffs As A Weapon Is A Big Mistake

In some rare instances, a tariff can be a good thing. An example would be to protect an industry critical to the country's economy. But Donald Trump doesn't use tariffs in that way. For Trump, tariffs are a weapon to beat another country into submission. If a country doesn't do what Trump wants, he punishes it with a stiff tariff..

This "tariff diplomacy" is not good for anyone, and it has negative consequences that Trump seems to be ignorant of.

* Tariffs on goods coming into the United States make those goods more expensive for consumers in the United States - raising inflation. This wouldn't be so bad if there were cheaper American made products available, but in many cases there aren't. Most electronics are no longer made in the United States. Many car parts for American cars are made in other countries. About 40% of vegetables and 60% of fruits are imported - an amount that could not be replaced by American growers.

* Imposing tariffs on another nation means they will likely retaliate by imposing tariffs on goods from the United States. This makes U.S. made goods more expensive in the other country, and hurts American businesses that try to sell goods in that country.

* In many instances (probably most), imposing a tariff violates a free trade agreement with that country. This is true of the tariffs leveled against Canada and Mexico. Those tariffs violate NAFTA, which was renovated and agreed to by the Trump administration. Why should any nation agree to an agreement with the United States knowing that Trump could violate that agreement at a moments notice?

* This kind of "tariff diplomacy" makes other nations seek and agree to free trade agreements that do not include the United States. The European Union and other entities are already starting to do this. When this happens, U.S. businesses lose out.

Trump thinks he's smart to use tariffs as a weapon. He's not! The United States will lose in the long run to this kind of idiotic bullying.