Tariffs

Tariffs have been the tool of choice to counter foreign currency devaluation for centuries.  A 3% tariff on Chinese imports would off-set the 3% Chinese Yuan devaluation, leaving prices the same, but not cheaper.

 

Many countries still use tariffs and have no appreciable government debt, but most of these are also oil producers.

 

NAFTA in 1993 removed tariffs to allow US manufacturers to relocate to Mexico and import parts and products back into the US and Canada without the cost of a tariff. 

 

The “free trade” scam started in 1993 has spread to Western, debt-ridden countries including Europe and the US. It did reverse government’s taxing strategy.

 

Tariffs were used to equalize costs between low-cost countries and high-cost countries. Tariffs were also used to protect strategic industries that would be needed in times of war. Tariffs are federal taxes that feed the federal beast and they result in higher prices for consumers. But, tariffs do protect jobs in the countries that impose them.

 

Germany still imposes tariffs on favored industries like machining equipment, automobiles, men’s clothing, beer and bakeries.

 

If we would lower our corporate income tax to make it more competitive and reversed unnecessary carbon capture and water regulations, we could bring back manufacturing jobs.  We should look at all options including tariffs.

 

Norb Leahy, Dunwoody GA Tea Party Leader