Trump used the threat of tariffs to force Mexico to stop illegal aliens coming into our nation. Tariffs have been used to open trade with other nations—nations that charge US high tariffs are threatened with even higher tariffs if they do not lower their tariffs.
Tariffs are used as negotiating leverage to stop wars, policies that kill our industries and more. In this case tariff against Mexico could once again force them to stop illegal aliens coming into iur nation—think of all the money and crime that saves us. Plus, the Fallbrook area of northern San Diego County could expand it avocado industry. All of this is good for America and our economy.
THE $10 AVOCADO
By Richard Colman, Exclusive to the California Political News and Views, 9/16/24 www.capoliticalnewsandviews.com
Donald Trump wants to put a 10% to 20% tariff on imports into the United States. In some cases, Trump wants even higher tariffs (perhaps 100% or higher).
As president, Ronald Reagan, a Republican — as Trump is — opposed tariffs with free nations.
Avocados used to cost about $1 each. Now, the price is $2 (or more) each.
About 90% of the avocados entering America come from Mexico. As long as Mexican avocados are free of contamination, the American government should not put a tariff on avocados or anything else coming from a non-hostile nation.
If Trump’s love of tariffs persists, a single avocado could reach a price of $10.
Tariffs are simply a tax. Americans are taxed enough; no more taxes are needed.
When Trump was president, he put tariffs on imported washing machines, steel, and other items. Tariffs only raise prices to consumers. The administration of President Joe Biden has kept most or all of the Trump tariffs.
At an extreme level, Trump hopes to replace the federal income tax with revenues from tariffs.
Tariffs on goods and services coming into the United States invite retaliatory tariffs from foreign nations. In 1930, the Smoot-Hawley tariff, signed into law by President Herbert Hoover, a Republican, only aggravated the Great Depression.
During that depression, 25% of Americans lost their jobs. Another 25% to 50% of Americans became underemployed. Americans also lost their homes and money they put in bank accounts.
Does Donald Trump want to become the next Herbert Hoover? The same question can be asked of Vice President Kamala Harris, a Democrat, if she is elected president in November 2024.
After four years of Hoover, Americans overwhelmingly, in 1932, elected Frankin Roosevelt, a Democrat, as president. Roosevelt was re-elected president in 1936, 1940, and 1944.
Free trade benefits consumers. A good example is the 50 states of the United States.
Suppose individual states could impose tariffs on products from other states. One can use the example of the Mississippi River, which traverses 10 states. If each state along the Mississippi River imposed a 10% tariff, an item that cost $100 in Minnesota would cost $250 by the time it reached Louisiana. These numbers apply only to tariffs and do not apply to such costs as transportation.
Tariffs protect inefficient producers. Imported cars from Japan have caused American-made cars to become better and cheaper. As indicated, there should be no tariffs on imports from non-hostile nations.
If tariffs are such a good idea, the states like Michigan should impose tariffs on cars made in South Carolina or Tennessee. America, as a free-trade region, would not permit Michigan to impose tariffs on cars made in other states.
On the subject of free trade, President Ronald Reagan, in a 1988 Thanksgiving address, said: “One of the key factors behind our nation’s great prosperity is the open trade policy that allows the American people to freely exchange goods and services with free people around the world.”
Much of the current Republican Party as well as much of the Democratic Party wants protectionism from imports. Protectionism is inflationary.
For people who like to eat avocados, America should not place a tariff on such fruits. With government in charge of tariffs, the current $2 avocado could become the $10 avocado.
America is not for sale! We could live without avocados!