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THE DAILY ASTORIAN • FRIDAY, FEbRuARY 22, 2019
OPINION
editor@dailyastorian.com
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Publisher
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PRO-CON
Have President Donald Trump’s
tariffs hurt America’s economy?
AP Photo/Markus Schreiber
An employee in protective clothing works at a furnace for steel producer Salzgitter AG in Germany. Due to tariffs, steel prices in the U.S. are roughly twice as high as in Europe.
PRO: Tariffs are hurting
American families and workers
CON: Trump’s targeted tariffs
have boosted many key industries
found that “16 jobs would be lost for every
ASHINGTON — Trade works.
steel or aluminum job gained.” Tariffs will
Tariffs don’t. It’s as simple as
result in a net loss of more than 400,000
that.
American jobs, it concluded.
In the past year, the Trump administra-
tion has imposed steep, new tariffs on hun-
Fifth, tariffs have been imposed on
dreds of billions of dollars of imports of all
America’s closest allies, including even
kinds — hurting budget-strapped families
Canada and Mexico. This undermines U.S.
as well as U.S. manufacturers and farmers.
efforts to build an international coalition of
Here are five ways tariffs have brought
like-minded countries to join us in combat-
ing the use of unfair trade practices.
pain to so many Americans and alienated
In the case of our North American neigh-
our closest allies.
bors, tariffs are especially galling. In fact,
First, tariffs are taxes, and they are paid
by American consumers — not foreign-
the White House promised repeatedly to
ers. Tariff hikes have meant price hikes on
end these tariffs as soon as a new North
everything from beer and clothing to off-
American trade deal was struck — which
road vehicles and RVs.
happened months ago.
In some cases, the new tariffs imposed
Yet the tariffs remain in place. Every
in the past year are being paid indirectly by
week the tariffs on Canada and Mexico
people like the U.S. auto workers
remain in place, approximately
who saw their 2018 profit-sharing
$500 million of U.S. imports and
checks reduced by $750 each.
exports are hit with retaliatory
Second, tariffs have caused some
tariffs.
input prices to soar, undermining the
What should we do? First, the
competitiveness of U.S. manufac-
Trump administration should keep
turers. Due to tariffs, steel prices in
its word and end the tariffs on Can-
ada and Mexico. This would bring
the U.S. are roughly twice as high
John G.
immediate relief to American farm-
as in Europe, where industrial inputs
ers, ranchers and manufacturers
Murphy
are usually more expensive.
This puts pressure on businesses
whose exports have been hit with
to offshore the manufacture of products
retaliation.
that use a lot of steel such as nails, lockers
Second, we need to end the multi-front,
and auto parts. For business owners, lay-
global trade war. Many of these tariffs have
offs are the final recourse — resisted for as
been applied using an old statute intended
long as possible, but it’s tough competing
for use against imports that “impair national
with rivals who benefit from lower produc-
security.”
tion costs.
It’s flat wrong to use this law against our
Third, tariffs invite retaliation against
NATO allies and other close security and
American exports. The U.S. has put tar-
economic partners, who actually help pro-
iffs on about $300 billion of imports in the
tect our national security.
past year, and these border taxes have boo-
Finally, we need to expand opportuni-
meranged against U.S. exporters. The U.S.
ties for trade, starting with congressional
approval of the United States-Mexico-Can-
Chamber of Commerce has detailed each
ada Agreement (USMCA).
state’s affected exports at TheWrongAp-
proach.com.
This critical agreement will preserve and
Exports of Wisconsin cheese, South Car- strengthen U.S. trade ties to our top two
olina-made cars, Pennsylvania apples, Ken- export markets. But we shouldn’t stop there:
tucky bourbon, Iowa pork and Michigan
Securing new agreements with the Euro-
pean Union, Japan and the U.K. will also
metal-stampers have all been targeted with
foreign tariffs. In a sense, so have the Amer- help our economy continue to grow.
ican workers and farmers who make these
Trade can be an engine of growth, job
products. Fourth, tariffs don’t create jobs.
creation and prosperity; tariffs undermine
You would expect steel and aluminum tar-
all of that. We need to end the destructive
iffs to boost employment in the production
tariff war that is gnawing at our economy’s
of these metals, but employment in these
foundations before it’s too late.
sectors has been almost flat since tariffs
John G. Murphy is senior vice president
were imposed.
for international policy at the u.S. Chamber
Looking at the broader impact, one study of Commerce.
ALTIMORE — Motorists driv-
point out the damages these unbridled
ing the 4.3-mile length of the
policies were doing to U.S. companies
magnificent Chesapeake Bay
and their workers was Rep. John D.
Bridge from Annapolis to Maryland’s
Dingell, the Michigan Democrat who
Eastern Shore often will get a first
died on Feb. 7 at age 92.
hand look at a longtime American trade
A master legislator, he served an
problem.
amazing total of 59 years and 22 days,
When conditions are right there’s
an all-time record for a member of the
usually a cluster of three to four
House of Representatives.
multi-storied freighters sitting motion-
He had forcefully warned against
less a mile or so south of the bridge
Japanese dumping when that country’s
waiting for permission to enter Balti-
automakers launched a huge push into
more’s historic 313-year-old port.
the U.S. market in 1970.
Yet even a highly respected politician
The freighters are bringing huge
like Dingell was unable to persuade
amounts of imports, chiefly from U.S.
enough members of his party to enforce
trading partners on the far rim of the
fair trading practices on U.S. trade part-
Pacific Ocean as well as Europe. Over
the course of a year, more than 700,000 ners, even though the Democratic Party
for years billed itself as “organized
motor vehicles enter and are unloaded
labor’s best friend.”
in the Port of Baltimore, as well
President Donald Trump saw
as huge amounts of other big
an opening for Republicans last
ticket items like construction
year and announced a series of
equipment, refrigerators, stoves,
trade tariffs aimed at leveling
televisions and computers.
the playing field.
China, which got a late start,
The United Steelworkers
specializes with rare miner-
als like lithium. Japan and South
Whitt
union and the AFL-CIO were
Flora
Korea send a wide range of vehi-
among the strongest supporters
cles and a bevy of other con-
of Trump’s proposal, although
both unions opposed him during
sumer goods.
Last year, China rang up a $375.2 bil- his 2016 election campaign.
lion trade surplus with the U.S., South
“For too long, our political leaders
have talked about the problem, but have
Korea was second with a $69.9 billion
largely left enforcement of our trade
surplus and the Japanese were a close
laws up to the private sector,” said the
third, selling the U.S. $69 billion more
Steelworkers’ statement. “This is not
in good and services than the U.S. sold
what hardworking Americans want from
them.
their government.” The union represents
A major reason the U.S. is running
1.2 million current steel workers and
such whopping trade deficits with its
retirees.
Pacific Rim trading partners is because
AFL-CIO president Richard Trumka
decades ago they starting engaging in a
echoed the steelworkers, saying: “We
strategy called “dumping.”
applaud the administration’s efforts to
Dumping is generally considered
fix this problem.” The AFL-CIO rep-
a violation of fair trade practices and
resents 12.6 million workers in its 55
involves the selling of goods in the U.S.
unions.
market at prices lower than the prices at
It’s time for other Democrats to put
which comparable goods are sold in the
aside their vengeful feelings against the
domestic market of the exporter.
president and get on the union band-
These sales obviously cause or
wagon and support Trump’s tariffs. The
threaten material injury to a competing
state of the American economy is bound
U.S. industry. But they are hugely ben-
eficial to countries like Japan because
to be a major issue in the 2020 presi-
dential election.
they enable its companies to operate at
Whitt Flora is a former Washington
maximum efficiency by running round-
correspondent for the Columbus Dis-
the-clock operations with a veteran
patch and the Space Aviation and Tech-
labor force.
nology Magazine.
One of the first U.S. legislators to
W
B