Will the United States Win the Tariff Tango?
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Will the United States Win the Tariff Tango?
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Noted trade experts Adam and Jeff discuss the new American trade policy of greatly increasing tariffs on most foreign imports.
They debate whether across-the-board increases in tariffs on imported goods is a strategic action or simply a blunt instrument approach to cutting down America’s enormous trade deficits. Jeff points out that the current policy is prompted by the desire to reshore industries and rebuild our domestic supply chains. Adam sees the increases in tariffs as a strategy to force other countries to build their products in the United States so that they do not get shut out of the American market by higher tariffs as the Japanese car industry chose to do when its auto exports were limited to the United States in the 1980s. Both see tariffs as a way to force other countries to the table now as opposed to waiting a decade or more to possibly work something out at the WTO.