Trade war unlikely

TARIFFS ARE A TOOL, NOT A GOAL

NOT ALL PROTECTIONISM IS BY TARIFF

Much anxiety has been created by the Trump administration by the imposing of and the threat of tariffs on imported goods. The imposing of tariffs is to draw the attention and to bring about the reduction of tariffs and restrictions on trade by our trading partners. It seems we do now have their attention. 

There are lots of ways to protect domestic producers other than tariffs. Many of these nations place restrictions on imported beef and poultry by placing unrealistic regulations that would be hard to overcome. It is protectionism without a tariff.

Most claim that any problems could be accomplished by negotiation with the World Trade organization. These often drag on for years without any resolution. The threat of tariffs get things moving much more quickly.

The motto of the Trump trade policy is reciprocity. If you have restrictions and tariffs, we will add restrictions and tariffs on your most profitable industries. The idea is to reduce tariffs and regulations for everyone. 

As for national security, our allies claim we are insulting them by taxing their steel and aluminum imports into our country. They claim they would never curtail our supply from them. What most don't understand is that there are fewer and fewer actual producers of steel and aluminum, most plants are now re fabricators who purchase bulk steel and aluminum from China and other oversees countries and then reform the metals into sheet, tubing or whatever is needed.All of these material are transported by ship and in the event of war could be made unavailable.

We have few actual producers of steel and aluminum from basic ores. We need to keep a strong and vibrant domestic steel, aluminum, and other basic industries to be independent from foreign  manipulation.

The United States is the largest market in the world. We are the market that everyone wants to sell to. At an average of 3 1/2% we have the lowest tariffs in the world. Many countries exclude our products or make the restrictions and regulations impossible to overcome. This has been a problem for decades and now it is being addressed. 

So, lets chill out, give the administration support for a policy of fair trade. We do hold the best cards. Our country will be made more prosperous, which will benefit everyone.