There been blowback from the many conservatives about President Trump’s plan to impose 25 percent tariffs on steel imports and 10 percent tariffs on aluminum.
Charles Koch, the conservative billionaire has been instrumental over the past 40 years in fighting for the ideals of freedom and liberty. In an op-ed he penned to the Washington Post, he was adamant in his opposition against Trump’s tariff policy.
“The same has been true throughout history. Countries with the freest trade have tended to not only be the wealthiest but also the most tolerant. Conversely, the restriction of trade — whether through tariffs, quotas or other means — has hurt the economy and pitted people against each other. Tariffs increase prices, limit choices, reduce competition and inhibit innovation. Equally troubling, research shows that they fail to increase the number of jobs overall. Consider the devastation of cities such as Detroit, where trade barriers to aid the auto industry did nothing to halt its decline.”
President Trump, ran on the platform that America was in a trade deficit with many countries, and that we should impose tariffs in order to obtain a trade surplus. A trade surplus simply means, that we are exporting more than we our importing. Three of the most successful economies that run trade deficits are America, Britain and Canada. While countries like China, Venezuela, and Brazil that run trade surpluses are currently in economic turmoil. A trade surplus is not a consistent indicator of economic success in a country.
House Republicans, have also expressed their discontent with this protectionism policy. 107 Republican members of congress wrote a letter to President Trump urging him to reconsider his tariff plan.
“Tariffs are taxes that make U.S. businesses less competitive and U.S. consumers poorer, any tariffs that are imposed should be designed to address specific distortions caused by unfair trade practices in a targeted way while minimizing negative consequences on American businesses and consumers.”
President Trump’s tariff policy policy is quite unpopular in the conservative circle. It remains to be seen as unpopularity grows whether or not he will consider alternative options.
This policy deserves blowback. Trump may just be doing this to leverage bargaining power, and if so, and something positive comes from it, then Trump will deserve some credit, but if it turns into a trade war, Trump will own it.