The existing trade war, characterized by tit-for-tat tariffs, is in actuality a continuation of the economic conflict began by Trump in 2018 during his first term. He couldn’t wait to resume it. Because the president is stuck. He does not seem to understand that the nation is a very different place from what it was when tariffs were used to raise revenue– over 100 years ago.
by Kevin Seraaj, J.D., M.Div., OrlandoAdvocate.com
Tariffs were the lifeblood of the federal treasury for the first 125 years of U.S. history, but their role as a major revenue source ended with the adoption of the income tax in 1913. Just because they were useful back then does not mean they should be used today. Why reinvent the wheel? Especially a broken one.
Think about it– a tax on all economic activity in the nation (“income”) generates much, much more money than a tax on the fraction that represents imported goods. In the modern world, tariffs only punish the ultimate consumers and tick off exporters who do business with us.
They could, admittedly, be used as a strategic and political tool to protect specific industries, but when they are imposed on every industry, and even on nations that already buy more from us than we buy from them, they are not only not strategic, but illogical and bad public policy as well. If it ain’t broke, don’t fix it. And whatever you do when making a case for tariffs being necessary, don’t tariff a country inhabited only by penguins.
But I guess if the real plan is to take the income taxes produced by American workers and businesses and give them to the billionaire class, then you might have to figure out some other way of finding the money needed to run the country. Hence, the ill-conceived tariffs.
Some countries will of course play the tariff game (Trump said some were “kissing his ass” to do business with America); but others will not. So far, the number of countries in such groups as BRICS, ASEAN and Africa who are choosing to say no to U.S. trade keeps growing. Canada is part of the wishy-washy European Union, but on its own has closed its doors on the U.S. Mexico has talked tough, but seems to be enjoying its relationship with Trump. Still, the money that comes in from tariffs (which is the money American consumers are willing to pay for higher-priced goods) will not be enough to replace the money being given away.
Yes, given away.
Trump’s tax bill gave billions to billionaires. The $17 trillion Trump keeps talking about is a myth. The Treasury Department doesn’t have it. And now, with U.S. farmers struggling under the weight of the tariff war he started, the president gives $20 billion to some guy running for president in Argentina.
Farmers in the U.S. are struggling, and the administration is sending billions to Argentina. America first? Really? Somebody make that make sense.
- Kevin Seraaj
- Kevin Seraaj
- Kevin Seraaj
- Kevin Seraaj
