Economists have been arguing against tariffs for at least the last two hundred years, but for some reason we have to keep making the argument that tariffs do not benefit an economy. They do not create wealth, they benefit the protected industry at the expense of other industries that are not protected and consumers have to spend more for both domestic and imported goods. Being self-sufficient is not the way to achieve economic growth and prosperity. Trading is mutually beneficial whether it is a transaction at your local grocery store or buying goods from China. Yes, even China. Yet, the Obama administration like the last administration is caving to special interest and increasing tariffs. The WSJ reported several stories last month on the change in tariff policies and the ways that firms have to work to get around them.
U.S. to Impose Tariff on Chinese Tires
Tariff on Tires to Cost Consumers
China Seeks an End to U.S. Trade Spat