I Am Generally Skeptical of Tariffs

As a punitive tool for nstions not doing our bidding, when those requests are reasonable, it is hard to argue against them.   When used against nations with whom we are likely to go to war, such as the PRC, they are essential. 

Generally,  the arguments against raising tariffs are:

1. They discourage the most efficient producers from international trade.  Canada is never going to be real good at pineapple growing.  They are very good at growing wheat.

2. Tariffs hurt consumers by raising prices for imports which also reduces price competition by domestic producers.

3. Foreign competition forces better products from domestic makers.  Look at how low quality American cars were until primarily Japanese competition almost drove U.S. car producers into bankruptcy. 

The case for higher tariffs:

1. It can encourage self-sufficiency.   The collapse in 1177 BC is a reminder that globalization can make you too dependent on other nations.

2. It can be a source of revenue.  Until 1913, tariffs were a major source of federal government income.  Creation of the federal income tax made tariffs relatively minor.

3. It can create jobs domestically.  2/24/25 CNN Business:

"New YorkCNN — Apple said Monday it will invest $500 billion on expanding US facilities over the next four years, a move that could help it avoid new tariffs on goods imported from China.

"Apple said the investment will create 20,000 jobs.

"Earlier this month, President Donald Trump announced tariffs of 10% on all imports from China, from which Apple imports many products, including most of its iPhones. Trump signaled Friday that Apple was planning to make this investment following a meeting with Apple CEO Tim Cook on Thursday. Trump attributed the investment to his tariffs."

Having a manufacturing base in America creates jobs and jobs that are generally better paid than, "Would you like fries with that, sir?" 

This process is not without its risks, of course.  Tariffs need to be carefully considered.  I have read that New Zealand has very high tariffs on cars,  even though it has no makers of cars.  Tariffs can create industries, as Hamilton's tariffs did to make America a great manufacturing nation.   But if no industry develops,  those tariffs will just be destructive to consumers.