Why Trump Is Right About Tariffs — Again

The tariffs will bring manufacturing back to the US, add manufacturing jobs, protect infant industries, and reduce the trade deficit.

As a free market economist, I strongly favor free trade with absolutely no tariffs.

But free trade must be fair, meaning that any tariffs that are imposed by one trading partner will exactly equal the tariff imposed by the other.

Since that is not the case, increased U.S. tariffs may be necessary to level the playing field.

Also, for security reasons, some critical product manufacturing must return to the U.S. even if it is more costly. Also, essential infant industries should be protected.

During President Trump’s first term, he examined all trade agreements that the U.S. had with trading partners.

Every agreement was slanted in favor of our trading partner and to the detriment of the U.S. It led to massive trade deficits.

Trump considered the automobile industry. When a car was produced in Europe and sold in the US a 2 ½% tariff was charged. However, when a car was manufactured in the U.S. and sold in Europe, the EU charged a 10% tariff.

Worse was the trade agreement with China.