Hardly a day goes by when you don’t hear Donald Trump either decrying the loss of American jobs to foreign countries because American companies have moved there or that our international trade policies suffer as a result of devalued currency or cheap labor costs existing in foreign venues. Trump says he can stop these unfair advantages by imposing a tariff on goods sold back to the U.S. (as high as 45 percent) by companies that have moved, or by revisiting the low tariffs we now impose on imports in the general sense. The U.S. currently imposes an approximate tariff of 1.4% on goods shipped into the country.
Some experts say that Trump’s proposed tariff hikes not only would present international trade rules and tactical problems (The World Trade Organization governs international trades, and there are numerous rules that apply) but that there could be a backlash from the countries affected by increased tariffs. As the New York Times reports, when the U.S. imposed a special tariff on tires imported from China in 2009, China responded in kind by imposing a tariff on American chicken parts that were exported there.
We think Trump is right to at least attempt to impose special and increased tariffs. American imports amounted to $2.309 trillion in 2015– 12.3% of total global imports—45.6% of America’s imports were from Asian countries. American jobs are lost because we import so many products, plain and simple. Greedy American companies have their products made in foreign lands to decrease labor costs so they can earn more profit– again American jobs are lost. Backlash and retaliation aside, America needs to start protecting American workers. Donald Trump has a firm grasp on this concept. American companies will have to think twice before they move to foreign land and leave their workers in America jobless. Increased tariffs will provide incentives for American companies to stay in the country and not outsource their manufacturing.