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Just throwing tariffs at imports to raise money is not a very smart economic policy. Systems are too complex to accurately predict the outcome. The stated goal is to raise revenue and bring manufacturing back to this country, but no one is looking at the unintended consequences.
During his first term, President Donald Trump put tariffs on imported appliances. Manufacturers didn’t create more jobs in America, they simply raised their prices to match the price of imported products, resulting in increased profits. The price of a refrigerator still hasn’t come down.
In 1976, President Gerald Ford tripled the import tax on sugar to win votes in the state of Louisiana (he lost). Within two years, the sugar market in the U.S. was in chaos. Sugar consumers looked for cheaper alternatives and discovered high-fructose corn syrup. Fifty years later, scientists have stated that we have an obesity epidemic in the U.S. and blame it, in part, on high-fructose corn syrup.
I was going to replace my 21-year-old car this year, but I think I’ll just get a tuneup and fix the brakes. Manufacturers will make one less car. I won’t be paying interest on a loan — the banks make less money. I won’t be paying higher insurance premiums — the insurance industry will suffer and the rest of you will pay higher premiums. It puts about 400 grams of carbon into the atmosphere for every mile I drive — what is that going to do to our planet 50 years from now?
Tariffs may be a good policy when foreign governments subsidize products then flood our markets with cheap goods. But to raise money, as Trump is using them, tariffs will ultimately fail as consumers find alternatives — with sometimes disastrous consequences.
Richard Crose, Bloomington