Fighting China is a correctly identified target IMO. The Q is how you do it and to what extent to maximize the actual outcome (which gotta be boosting the US production I guess)
I agree but the method we did this roll out was really illogical.
We put out tariffs on almost every country in the world including some countries that have no tariffs on us and even some places that are not inhabited. Does it make sense to fight the whole world (7 billion people) at once?
The method we used to calculate these tariffs was a ridiculous joke.
Tariffs are a importer tax not a tax on the other country. We look dumb when we keep insisting the other country is paying them.
The USA has by far the largest GDP in the world. Why would we want to copy poorer countries? Free market capitalism has been great for the USA.
America first should not mean America alone. We prosper via trade. The most isolationist trade countries like North Korea are some of the poorest.
The tariffs we put on steel previously in many ways backfired on us.
145% tax on any goods is silly and unrealistic. Nobody is going to pay a $1.45 tax on a $1 good.
We have 350 million people. It is natural for us to have trade deficits with poorer smaller countries. Trade deficits are not always bad.
We should manufacture things that relate to our national security here in the USA. We need to make computer chips and drugs in the USA but the most efficient economies are the ones that thrive. We do not need to have millions of people sewing Nike's in the USA imo. Factories are not going to be built in the USA in 60 days so what happens in July?
Our goal should be free trade with as many countries as possible. Navarro is a radical that views trade as evil.
Yo-Yoing these tariffs up and down makes it very hard for USA companies to plan 30-90 days in advance.
Markets and GDP projections in decline are telling the story.
The dollar being down 5%-10% in a month is not great either.
We already raise $5 trillion in tax revenue a year. That is by far the most in the world. That is more than most countries entire GDP. The last thing we need is more taxes via tariffs.
Using tariffs to open up more freer trade makes sense but shooting ourselves in the foot because other countries do was not wise. We could have been much more logical when doing this.