Commentary: Trump's concerns are valid, but are tariffs the answer?

Commentary from former Lt. Gov. Bill Bolling.

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Former two-term Republican Lieutenant Governor Bill Bolling shared commentary about President Donald Trump’s new tariff announcement. Read it below.

Bill Bolling

TRUMP’S CONCERNS ARE VALID, BUT ARE TARIFFS THE ANSWER?

by Bill Bolling

President Trump has announced his intention to impose tariffs on products being imported to the U.S. from China (10%), Canada (25%) and Mexico (25%).

Trump says these tariffs are required because of 1) current trade imbalances with these countries, 2) their failure to crack down on fentanyl being brought into the U.S. from their countries, and 3) in the case of Canada, and in particular Mexico, their failure to secure their border and prevent illegal immigrants from coming into America.

There is undoubtedly some validity to Trump’s concerns. However, are tariffs the answer?

Imposing tariffs on China, Canada and Mexico will certainly have a negative impact on the economy of these nations. Tariffs will increase the cost of the goods these countries import to the U.S., which could result in less consumption of these products by Americans and impact economic production in these countries.

The goal of the tariffs is to put economic pressure on these countries to comply with America's goals.

However, these countries have already announced that they will respond by imposing similar tariffs on products being imported to their countries from the U.S. This will drive up the cost of goods being exported from the U.S, and that could drive down the consumption of American products in these countries and have an adverse impact on our own domestic economic production.

The bottom line is that tariff wars rarely benefit anyone. They drive up the cost of goods and services, and they drive down economic production. Everybody loses.

And in a time when inflation has already had a significant impact on the cost of goods and sevices, the last thing we should do is pursue policies that will further drive up costs.

Here is an excellent article from the Bush Institute at Southern Methodist University that succinctly sets forth the case against tariffs because of their adverse impact on prices, jobs and innovation.

The issues President Trump is trying to address are real, but no one who believes in free trade should embrace the idea that tariffs are the answer. We need to search for a different solution.

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