by Donna Fisher, Stevensville
I don’t know about you, but I am worried about our economy and the possibility of future increases in the cost of living. I believe our choices in the coming election are important. We can’t predict with certainty which policies and what actions each of the presidential candidates will implement, but we can make some pretty good guesses based on their previous records in office.
Donald Trump says that he intends to impose new tariffs on nearly all imported goods. He claims tariffs will support American businesses and keep foreign businesses from pulling money out of our economy. Will tariffs boost profitability for our small businesses and agricultural producers? What were the results when tariffs were used as protectionist trade policies in the past?
When Trump was in office in 2018, he put tariffs on goods imported from Canada, Mexico, Australia, India, and Europe. All countries targeted by these tariffs retaliated by putting equal tariffs on American goods. In 2019, Trump ordered a 10% tariff on Chinese goods. China responded by halting imports of all American agricultural products. The Trump administration had to enact a program that paid farmers $28 billion in aid to keep our agricultural producers from suffering disastrous losses. Did the tariffs enrich the American economy as promised?
China and the other foreign countries who had tariffs put on their products did not pay the tariff amounts; Americans paid them. That’s the way tariffs work. The tariff percentage is added to the cost of each imported item to make up the price that consumers are charged. Not only did we pay an extra 10% or more for everyday goods at Walmart, clothing stores, appliance and electronics stores, but our farmers and ranchers lost profitable overseas sales on their agricultural products. The aid checks that were sent to farmers during Trump’s presidency came from U.S. tax dollars. So the answer is no, tariffs do not help the American economy. In fact, tariffs function as additional taxes that American consumers have to pay.
President Biden has implemented new trade agreements with our foreign allies to reduce tariffs, but there is much remaining ill will from those countries that has made it difficult to reestablish trust with our trading partners. I share their lack of trust in Trump’s economic policies. You need to make your own decision about the effectiveness of Donald Trump’s approach to support our economy.