Tariffs vs. Trade Agreements

The US federal government is currently looking at the Pacific Partnership Trade Agreement (PPT). The US worker usually gets screwed on these agreements. This one allows companies to replace US workers with workers from the other countries – a really bad idea .

A Tariff is a Sales Tax imposed on foreign imported goods meant level the playing field and off-set prices of goods. In the 1990s, it was called “protectionism”. It left high wage countries vulnerable to cheaper imports.  It was that “great sucking sound” you heard after NAFTA.

Tariffs have been used for centuries to level trade between countries. The US federal government revenue came principally from tariffs prior to the Income Tax Act of 1913.

Tariffs charged by different countries have been reduced since 2000. Tariffs have been used to ensure that critical industries in a country could not be priced out-of-business by cheaper imports. Typically, Steel was seen as “strategic” for the manufacture of military equipment. 

Iran  38.6 in 2000 down to 25.7 in 2011

Russia  14.6 1997 down to 7.5 in 2011

China  21.7 in 1996 down to 7.7 in 2011

Mexico  18.0 in 2001 down to 7.2 in 2010

UK  11.0 in 2001 down to 7.5 in 2011

Australia 14.5 in 1991 down to 3.0 in 2011

Germany 5.9 in 1990 down to 1.4 in 2011

United States 5.7 in 1990 down to 1.4 in 2011

France 5.9 in 1990 down to 1.4 in 2011

Japan 3.4 in 1988 down to 2.1 in 2011

Raising tariffs would make foreign goods more expensive, but it would give US-based manufacturers a more level playing field. 

Norb Leahy, Dunwoody GA Tea Party Leader