Dear Editor,
Tariffs are simply taxes. They increase business costs and force businesses to pay money to the government for no particular reason.
Tariffs do no one any good. They invite countries to retaliate against our goods. This not only ruins our export markets but also raises prices for everyone, tipping small businesses into failure.
There was a time when protectionist policies benefited powerful industrial interests by insulating them from foreign competition. Nowadays, however, we dwell in a global economy with cheap labor available overseas. Thus, tariffs have become outmoded.
More than 60% of world GDP is now bound up with imports and exports, slightly emphasizing the necessity of free trade.
History tells us tariffs have never worked well. Tariff proponents appear out of touch with current economic times.
For instance, tariffs on computer chips severely impacted the auto industry, causing scarcity and sharp price increases in cars. We’ve been countering this by bringing chip manufacturing back to America. This limits the competitive advantage of imports and avoids tariffs increasing consumer costs.
Moreover, tariffs result in price increases for consumers, a decline in imports, and even retaliation by other countries.
Unfortunately, tariffs no longer suit the global market we inhabit today. They cause countries to cease buying American exports and turn to other nations instead.
To conclude, tariffs are now a losing proposition. They do not fit our world’s modern, global market.
Jerry Hanson
Elkhorn
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Overview of Tariff Impacts
| Aspect | Impact |
|---|---|
| Business Costs | Increased |
| Export Markets | Ruined due to retaliation |
| Consumer Prices | Increased |
| Small Businesses | Pushed towards failure |
| Global GDP | Over 60% involved in imports and exports |
| Historical Effectiveness | Generally ineffective |
| Example: Auto Industry | Scarcity and price hikes due to chip tariffs |
Related Information
For further understanding of tariffs and their global impact, you might like to explore:
The historical and present stance on tariffs shows a significant impact on businesses and global trade dynamics.
