Let’s be clear about what tariffs are… they are taxes imposed by our government on American business and consumers to slow down commerce. When American companies like Ford buy steel from China to build cars, it’s Ford that pays the tax bill not China.
Tariffs are intended to throw sand into the gears of capitalism and they are doing exactly that. American factories are holding off hiring because of steel tariffs and farmers are going bankrupt in record numbers as sales to China plummets from $24 billion in 2014 to just $9 billion (62% loss in just 4 years). American farmer were barely scraping by before this albatross.
What does Trump do about these disastrous tariffs? Impose even more!
The question is why? What does he hope to gain? This is an important question because in all this mess, it seems that people have forgotten the very point of tariffs.
Trump argued that the Chinese tariffs were to stop Chinese theft of U.S intellectual property.
It’s important because it doesn’t seem like very many people even remember this. The Trump administration doesn’t seem to because they’re not even mentioning this in trade negotiations. Instead they’re taking about how many bushels of soybeans and other minor stuff.
In this tariff fiasco, the goals have been so lost that people are scrambling to find any positive outcome no matter how small.