To some tariffs are taxes. To others, tariffs are a negotiating leverage to open markets for the U.S. Recently, I went on a two week tour of England, from London to Shetland—in Scotland. During that time, I only noticed ONE American car on the road—a Ford in Dublin. Australia does not allow our beef in their country. Trump is using the tariff to open our markets—anybody have any other good ideas to do this?
“Tariffs can only be justified to protect America’s national security. The word “security” is elastic. Certain items like books can be classified as related to America’s national security. Years ago, the American government tried to prevent the mailing of foreign literature, like Communist propaganda, to the United States. Government should not be involved in deciding what American can or cannot read.”
In this case, national security, in the form of economic security is being tested. If we do not have markets, or that markets due to the tariffs of other nations are closed to us, our national security is in trouble.
READ MY LIPS: NO NEW TAXES
By Richard Colman, Exclusive to the California Political News and Views, 4/21/25 www.capoliticalnewsandviews.com
Tariffs are taxes. Let there be no doubt about that.
Tariffs are fees (taxes) imposed on goods a nation imports.
In 1988, then-Vice President George H.W. Bush (Bush senior), told the Republican National Convention, in his acceptance speech for the Republican presidential nomination, “Read my lips: no new taxes.”
Elected in November 1988, Bush later broke his “no new taxes” pledge in 1990. Bush signed a tax increase into law. In November 1992, Bush lost his re-election campaign to Bill Clinton, then the Democratic governor of Arkansas and the 1992 Democratic nominee for president.
In the United States, there are no tariffs between and among states. The U.S. is one of the world’s biggest free-trade zones.
If any of the 50 states could impose tariffs, perhaps Michigan and Washington State might want to impose tariffs on South Carolina’s manufacturing. Cars made in Michigan and airplanes made in Washington State might benefit from imposing tariffs on South Carolina, where labors unions are weak and labor costs are lower.
In South Carolina, cars and airplanes are made more cheaply and more efficiently than in Michigan and Washington State.
Labor unions, especially the United Auto Workers union, want protection from manufacturers in foreign nations. “Big Labor” tends to be protectionist and isolationist.
Tariffs protect inefficient manufacturers. Are Americans better off now that cars are made in Japan, South Korea, and Germany rather than having cars made by such domestic manufacturers as Ford, Stellantis (Chrysler), and General Motors?
In fact, with some General Motors cars, the engines and transmissions are made in foreign countries like South Korea.
When Americans buy foreign goods, Americans pay in U.S. dollars. Suppose Great Britain, Japan, and South Korea have all these dollars. What can these foreign countries do with the dollars? They can invest the dollars in something they want to buy in America (like agricultural products). Or these foreign nations can invest these dollars in America. These foreigners might want to put these dollars into the American stock market or build new plant and equipment in America.
Foreigners can buy U.S. Treasury bills (bonds) that help finance America’s dangerous national debt, now $36 trillion and growing. (In 1981, the national debt was $1 trillion.) Or these foreign countries can try to exchange their dollars for such currencies as British pounds, Japanese yen, or the Korean won.
Putting all these dollars up for exchange will create a weaker dollar. For example, instead of paying $1.30 for a British pound, the cost of a British pound might be $1.50. Would American be more likely to travel to Britain if a pound costs $1.50 rather than $1.30?
The time has come for America to get its “Big Government” out of influencing the American economy. Tariffs are nothing but a tax -– a tax that will create inflation, job losses, shortages, smuggling, and a black market. In addition, tariffs will protect, by stifling competition, inefficient American firms. Tariffs invite retaliation by foreign nations.
One of America’s influential Republican presidents, Ronald Reagan, was a strong supporter of free trade.
In 1988, Reagan said: “ . . . we should take a moment to recognize that one of the key factors behind our nation’s great prosperity is the open trade policy that allows the American people to freely exchange and services with free people around the world.”
Tariffs can only be justified to protect America’s national security. The word “security” is elastic. Certain items like books can be classified as related to America’s national security. Years ago, the American government tried to prevent the mailing of foreign literature, like Communist propaganda, to the United States. Government should not be involved in deciding what American can or cannot read.
Donald Trump, by using tariffs, is an exponent of “Big Government.” Does America need another Franklin Roosevelt or Lyndon Johnson to make government bigger and more dangerous?
There should be a flat tariff on all goods with all counties regardless of the commodity. The rate could vary from country to country. ie, 50% with China on all items imported and exported and 5% with Ireland. Now we are equal.
I would suggest that everyone has an opinion about tariffs/taxes. If that is the case, California has high tariffs and Californians get little in return. Trump has an iq higher than most of the people shouting “it won’t work.” The same ones who use the same answer when it comes to “give peace a chance.” One thing for sure, the people who are running California either know what they’re doing or they give a rat’s a$$. They’re either trying to control the outcome (socialism) or they don’t have the best interests of Californians in mind. I say “give tariffs a chance.” It may not be about tariffs but opening a dialogue with countries that go far behind economics. Imagine how successful a country could be if the California government tried to work with the people’s choice rather that waste our tax dollars with their “resistance.”