Tariffs. What is the right answer?

[Peter1469]

Would the same approach work for fighting the tariff imbalance? What if we ended all tariffs on imports?

We saw what the Senate did with tariffs on Chinese goods- so no if the US won't follow through it wouldn't work. Had the EU waited a week or so to announce they agree to zero tariffs I am sure the Senate would have caved there as well. If we unilaterally ended all tariff Americans would be buying a lot more foreign goods and less American goods. That means less American's with jobs.

[Peter1469]

Tariffs are a tax on trade. Higher tariffs means less trade. Less trade means less prosperity.

I agree that tariffs are a tax on trade. Tariffs are used by nations to influence the actions of other nations. Ideally there would be zero tariffs; but zero tariffs for the US and tariffs for our trading partners makes no sense, not unless we want to increase the welfare rolls.

[MisterVeritis]

We saw what the Senate did with tariffs on Chinese goods- so no if the US won't follow through it wouldn't work. Had the EU waited a week or so to announce they agree to zero tariffs I am sure the Senate would have caved there as well. If we unilaterally ended all tariff Americans would be buying a lot more foreign goods and less American goods. That means less American's with jobs.

Or it might mean more foreign investment in the US.

If no tariffs mean fewer jobs then do more tariffs mean more jobs? If so why not tariff everything to the point where no one would trade with us?

[Hoosier8]

Tariffs are a tax on trade. Higher tariffs means less trade. Less trade means less prosperity.

The goal is zero tariffs like the EU agreed to on certain products.

[Hoosier8]

I agree that tariffs are a tax on trade. Tariffs are used by nations to influence the actions of other nations. Ideally there would be zero tariffs; but zero tariffs for the US and tariffs for our trading partners makes no sense, not unless we want to increase the welfare rolls.

For China tariffs are used to protect Chinese manufacturing.

[Chris]

Economically, tariffs make no sense. If we put a tariff on an import, then we are taxing US consumers, and it could be significant because most imports are inputs to manufacturing products all of which will see an increase in price passed on to consumers.

If another nation irrationally wants to put tariffs on imported US goods and make its people pay more, it matters little. It might reduce demand but the particular good can be exported elsewhere.

If we remove all tariffs then we will import more goods and that might lead to the so-called and misleading trade deficit. But how is it a deficit? US consumers are paying less and will thus have more to spend on other goods, some of which will be manufactured here. And the money going to foreign nations can only eventually be spent here on US goods or invested in the US. There is no deficit.

The only counter-argument to this is the political argument for the national defense, the need to be able to manufacture war matériel here rather than depend on other nations.

[Captdon]

Or it might mean more foreign investment in the US.

If no tariffs mean fewer jobs then do more tariffs mean more jobs? If so why not tariff everything to the point where no one would trade with us?

We aren't self-sufficient.

[Lummy]

I'm not an economist (and would rather play 3-card Monty), but this seems a good article in the WSJ from March 2, 2018 titled Reagan Protectionism vs. Trump Protectionism by Holman W. Jenkins, Jr.

[MisterVeritis]

If no tariffs mean fewer jobs then do more tariffs mean more jobs? If so why not tariff everything to the point where no one would trade with us?

We aren't self-sufficient.

By this logic, we would be forced to become self-sufficient.

So, no tariffs or massive tariffs?

[Captdon]

If no tariffs mean fewer jobs then do more tariffs mean more jobs? If so why not tariff everything to the point where no one would trade with us?

By this logic, we would be forced to become self-sufficient.

So, no tariffs or massive tariffs?

Where would we get the rare earth? Where do we get enough platinum? Where do we get titanium? It's not that simple.