Editor:
President Trump loves tariffs. He has already imposed them with some exceptions on items from Canada, Mexico and China, although, at this time, the first two tariffs are paused for negotiations. Soon Trump will be proposing more tariffs with the “Reciprocal Trade Act” (RTA). The act would place U.S. tariffs on all imported goods from a country equal to the tariff rate it imposes on imports from the U.S.
Trump misleads when he explains how the RTA would work. From a Trump campaign video, other countries will have two choices: either “get rid of their tariffs on us, or they will pay us hundreds of billions of dollars, and the United States will make an absolute FORTUNE.”
Yes, the United States government may make a fortune from the tariffs, but the fortune will come from the U.S. importers who must pay these tariffs, not from the exporting countries. This added expense would likely be passed on to U.S. consumers through increased prices on their imported goods. Economists estimate that, if just the Canada, Mexico and China tariffs were implemented, living costs for American households would rise by more than $2,000 per year.
It’s no wonder Trump wants these tariffs. The new tariff dollars could help back Congress’ efforts to support the continuation, or even expansion, of Trump’s soon to expire tax cuts that disproportionately benefit corporations and the rich.
If this were to happen, it could be likened to Robin Hood in reverse: Take from the poor to give to the rich.
Sherman Schapiro, Eureka
This article appears in Step Aside Prop. 47, Proposition 36 Has Arrived.