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THE DAILY ASTORIAN • FRIDAY, AUGUST 24, 2018
editor@dailyastorian.com
KARI BORGEN
Publisher
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PRO-CON
AP Photo/Ben Margot
The container ship Maersk Emerald is unloaded at the Port of Oakland.
AP Photo/Nati Harnik
Farmer Don Bloss examines a tall sorghum plant in his field
in Pawnee City, Neb. Farmers and agricultural economists are
worried that President Trump’s trade, immigration and biofu-
els policies will cost farms billions of dollars in lost income
and force some out of business.
AP Photo/J. Scott Applewhite
Americans who work for international auto companies demonstrate on Capitol Hill in Washington against trade
tariffs they say will negatively impact U.S. auto manufacturing.
Will Trump’s tariffs create
a stronger economy?
PRO: Trump’s tariffs help even
the score against predator nations
CON: His tariffs are too
great a gamble for America
ALTIMORE — One only needs to
have translated into more jobs and greater
take an Amtrak train bound from here
manufacturing capacity in the United States.
to Philadelphia to witness scores of
Trump, like unsuccessful 2016
abandoned factories — all victims to one-
Democratic presidential candidate Bernie
sided U.S. free-trade pacts with cheap labor
Sanders, promised to act against countries
countries like China.
like China, which had enjoyed an unbalanced
While there is a valid argument that
trade relationship with the United States
America’s industrial base was overtaken by
that emaciated America’s blue-collar labor
technological advances, such as automation
force and the local economies that were left
and robotics, the fact that even modern
shattered by job loss.
American manufacturing plants have joined
Since Trump retaliated against America’s
the ranks of the abandoned show how
manufacturing competitors in Asia
nations like China, Mexico and India
and Latin America, U.S. companies
are capturing America’s techno-in-
are thinking twice about off-shoring
dustrial base.
manufacturing.
Companies like Apple, Carrier,
Some are opting to assemble
Leviton, Whirlpool, La-Z-Boy and
products at U.S. factories, using a
Harley-Davidson were eager to
combination of domestically-made
WHITT
outsource their manufacturing to
components and those manufactured
FLORA
foreign locations, where cheap labor
abroad.
abounds.
For this “one foot in America, one
Trump’s tariffs leave these and other
foot abroad” policy, companies are seeking
countries with a simple choice: Either main-
tariff relief for components that require
tain or return manufacturing of their products
cost-prohibitive assembly line installation.
back to America or face a punitive import
These partial U.S. manufacturing firms,
tax on goods imported from their factories
while not perfect, are a step in the right direc-
tion and help take the sting out of unintended
abroad.
President Donald Trump’s imposition of
consequences of Trump’s tariffs. Some
“fair trade” tariffs has worked the way it was
manufacturers of automotive parts have even
intended to — boosting the number of U.S.
moved back to Michigan from China.
manufacturing jobs.
Overall, Trump’s tariffs are having the
Sectors that have benefited from Trump’s
desired effect in key industries.
protectionist policies include solar panels,
One is medical technology, an area in
washing machines, flat screen television,
which the United States always excelled. For
steel and aluminum manufacturing.
instance, Insulet Corporation, the manufac-
turer of insulin delivery systems, is moving
So far, manufacturing jobs are increasing
across the nation, especially in distressed
its plant from China to Massachusetts. Other
cities like Buffalo, N.Y.; Louisville, Ky.; and
bio-industry and pharmaceutical firms are
Huntsville, Ala., where U.S. firms abandoned
relocating manufacturing from China and
their plants for the allure of cheap overseas
Europe to states like New Jersey and Rhode
labor but now are “reshoring” jobs lost to
Island.
foreign outsourcing.
Level-headed trade policies by Trump
Obviously there remains much more for
have also seen the U.S. semiconductor
Trump to do to reverse the labor drain from
industry return some of its manufacturing
America that claimed 5 million manufactur-
jobs from China, Malaysia and Taiwan to
ing jobs since 2000.
American shores.
Ratings agencies, like Moody’s, have
Trump’s tariffs have come under fire from
responded to Trump’s 25 percent tariff on
some traditional economists.
imported steel by improving the investment
In the long run, however, America
picture for the U.S. steel industry.
will be better off for adopting a sane trade
Similarly, the American aluminum
policy. And polls show that many voters are
industry is seeing increases in stock valuation
prepared to endorse when they go vote in the
because of Trump’s 10 percent tariff on
upcoming midterm elections.
imported aluminum.
Whitt Flora is a former Washington cor-
respondent for the Columbus Dispatch
Tariff protections for U.S. steel and alumi-
num have not only resulted in an improved
and writer for Aviation Week and Space
Technology.
outlook for investors in both industries but
ASHINGTON — After a long,
quite as disastrous, but haven’t helped
slow climb following the Great
much either.
Recession, the U.S. economy is
With tariffs on most consumer goods
yet to take effect and retailers stocking up
finally thriving again.
ahead of that, consumer pain may build
Thanks largely to tax and regulatory
slowly at first.
reform, wages and take-home pay are
But higher prices are inevitable since
higher, employment has risen and the
retail industry profit margins averaging
consumers who drive the economy are
about 2 percent are far too narrow to
confident.
absorb tariffs as high as 25 percent.
Things are so good that at the National
Retailers cannot quickly or easily
Retail Federation, we have increased
restructure complex and sophis-
our economic forecast for 2018,
ticated supply chains. And
predicting retail sales will grow at
with many of these products in
least 4.5 percent over 2017 rather
question no longer made in the
than the range of 3.8 percent to 4.4
United States in mass quantities,
percent we predicted earlier this
sourcing would likely go to other
year.
foreign suppliers rather than U.S.
But that revised forecast could
MATTHEW
companies.
have been even higher if not for a
SHAY
Even if prices don’t rise imme-
number of unknowns — the big-
gest of which is the growing trade
diately, that doesn’t mean the effect
of tariffs won’t still be felt this fall and
war threatening our nation’s economy.
winter. Perception can become reality,
And that war is being fought on multiple
and the mere talk of tariffs can negatively
fronts.
impact consumer and business confidence,
Negotiations to modernize the North
leading to a decline in spending and even
American Free Trade Agreement have
job creation.
been going on for a year, accompanied
Tariffs don’t affect just finished con-
by repeated threats to pull out of the
sumer goods. They have already begun
landmark pact between the United States,
to drive up the cost of parts and materials
Canada and Mexico that has created U.S.
needed to produce “Made in USA”
jobs and lowered prices for U.S. consum-
ers for a quarter century.
products made in U.S. factories and small
Tariffs were imposed on imported steel
shops that support the jobs of millions of
and aluminum earlier this year, and have
American workers.
already been reflected in higher prices for
Higher costs mean higher prices for
everything from canned beer and soda to
American-made products, which makes
nails and washing machines.
them less attractive to domestic consum-
ers and less competitive as exports in the
This summer, tariffs on $50 billion in
global economy.
goods from China have taken effect, with
Furthermore, retaliatory tariffs from
the threat of tariffs on an additional $200
China and other countries are already
billion waiting in the wings.
targeting and impacting U.S. exports
While the first set of tariffs have
ranging from agricultural products to
affected relatively few consumer goods,
manufactured goods. Retailers in farm
that will not be the case with the next
communities and those in small towns
round, and retailers have been breaking
with manufacturing jobs tied to exports
records at U.S. ports as they bring mer-
chandise into the country before the new
will feel the impact of retaliation acutely.
import taxes can take effect.
Perhaps this is all a bargaining strategy
Let’s be clear: Tariffs are taxes that
yet to reveal itself. But it’s time to stop
are paid by U.S. businesses and,
gambling with our nation’s economy and
ultimately, hardworking Americans.
make the deal that puts China’s abusive
Almost any economist will say tariffs are
trade practices to an end without throwing
away the benefits of tax reform and making
bad.
hardworking Americans pay the price.
Look at the Smoot-Hawley Tariff
Act of 1930, which many historians say
Matthew Shay is president and CEO of
contributed to the Great Depression.
the National Retail Federation, the world’s
Tariffs passed since then haven’t been
largest retail trade in Washington, D.C.
B
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