There is no story bigger that the current tariff battle. We are going bankrupt. The trade deficit is killing our industry, security and jobs. In 1988 Donald Trump was on the Oprah Show and discussed the problems with trade—and that we needed to fight back via tariffs. Now, 37 years later, he is doing it.
“The only positive explanation for President Trump’s trade gambit is that he is using the threat of imposing tariffs as a negotiating tool to get a better deal for American businesses internationally. Such a notion makes sense. He has used similar tactics to receive concessions from foreign governments in the past.
Examples include the war between Russia and the Ukraine where the President is trying to engineer a cease fire. Convincing NATO members to pay a larger share of military expenses illustrates Trump’s methodology.
In a similar fashion Trump is trying to get Iran to alter weaponization of their nuclear program by threatening sanctions.
Like it or not, we are in the battle. When in war, you want to win. With 70 nations wanting to fix the problem, it looks like we are winning. The big question mark is what will the deal with China look like.
Tariff concerns by Richard Eber
Richard Eber, Exclusive to the California Political News and Views, 4/9/25 www.capoliticalnewsandviews.com
Wasn’t it the late great comedian Joan Rivers who began her monologues with the line “Can we Talk?” With this in mind my discussion on tariff’s as a weapon of foreign policy begins.
Since the 1970’s, I have worked in the international trade field. As a Federal Maritime Commission (FMC) bonded freight forwarder, my career has been dedicated to furthering overseas commerce.
During this time I believe world trade is an important component of furthering world peace. It is my opinion that import and export trade to and from the United States plays an important role in keeping unnecessary wars from occurring.
Such experience has led to my concerns over Donald Trump imposing 25% tariffs against Canada, Mexico, China, Europe, and other countries whom he feels are ripping the USA off. The President may be right in his perception of his country being a victim of unfair trade practices. However, his solutions contain alarming ramifications.
This includes:
- Inflation caused by the negative effects of adding costs to imported goods. Especially vulnerable to higher retail pricing is the middle class and the poor. Think of what Walmart or Cosco might charge for products manufactured abroad with stiff penalty tariffs in place?
- Retaliation from other countries will undoubtably hurt American exports sales, especially in the area of agricultural products.
- It must be factored how foreign countries (especially China) will be affected by their exports being slowed? It is likely their economy will suffer and a major recession will ensue. Should this transpire, their
Totalitarian regime will likely take military action against targets in the Far East including Taiwan, the Philippines, and even Japan.
Taking these things into account, is it really worth it for the United States to impose such Draconian trade measures on our trading partners?
Of course factoring into the equation is Donald Trump’s perceived strategy of using the fear of import tariffs to create a more level playing field for his country? His intentions are balanced with the consequences of implementing such a nationalistic trade policy?
I for one do not care to find out what might happen if the President’s threats becomes reality.
History has shown the cause of wars is directly related to imposing misguided tariffs. In American history we need only go back to our beginnings. The Boston Tea Party pertained to an import tax on the King’s favorite beverage.
If this is a lightweight example, lets look at the main cause of the Civil War. In school they refer to slavery for the conflict between the Blue and Gray. Historians differ.
They believe the South’s agrarian economy dependent on slavery to grow agricultural products. State’s rights were popular for economic and social reasons.
This was in direct conflict to the industrial based North. They required stiff tariffs to protect its young manufacturing base. For them, strong central government was needed.
Despite the efforts of Henry Clay and many other patriots, an armed conflict was inevitable,
The most alarming policy previously undertaken by the U.S. Government was the Smoot-Hawley Tariff passed in 1930 by President Hoover. This protectionist (America First) movement inspiredmeasure, raised the price of imports by over 20%. Retaliation from other countries resulted in fewer US origin exports being shipped.
Smoot-Hawley is generally credited with being a major factor in worsening the Great Depression and bringing on WWII that soon followed.
The warnings of many economists today are of great concern. They believe Trump’s plans for imposing tariffs on Canada, Mexico, and China, might have the same effect as President Hoover’s efforts to level the trade playing field almost 100 years ago.
The only positive explanation for President Trump’s trade gambit is that he is using the threat of imposing tariffs as a negotiating tool to get a better deal for American businesses internationally. Such a notion makes sense. He has used similar tactics to receive concessions from foreign governments in the past.
Examples include the war between Russia and the Ukraine where the President is trying to engineer a cease fire. Convincing NATO members to pay a larger share of military expenses illustrates Trump’s methodology.
In a similar fashion Trump is trying to get Iran to alter weaponization of their nuclear program by threatening sanctions.
When it comes to being a player in the “art of the deal” the former host of The Apprentice is a master of this craft. Whether he has gone a “bridge too far” with his current tariff threats remains to be seen. Hopefully, the recent crash of the stock market is not a preview of coming attractions.
Those like myself, who are true believers in the benefits of international trade, anxiously await what transpires in the future.
The problem with the tariff situation is everybody has an opinion, but no one has a solution. All they can say is “Trump is wrong” in dealing with China, Canada, Mexico, the European Union, etc. but they don’t say what the alternative is. Most pundits look at one country or one segment but forget we are in a global economy. I don’t know if Trump is on the right tract, but I do know that no one has a better idea.
Yes, tariffs are an unfortunate idea. And maybe, yes, a negotiating tool. But the really horrible reality is that at some point— either now, affecting us, or in the future affecting our children and grandchildren — the feathers have to hit the fan. The bad times have to roll. Trade has to get balanced. Spending has to be cut. The national debt has to come down. So Trump might be nuts enough to bite the bullet and get it all done now. If so, bless him.