Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowPlease subscribe to IBJ to decode this article.
atsptt rpasmdcyr ldew hiEnoPiiseuuns daia e’rbttsimnh tg ,Tonrl anti lheh ntentoneheionTi nneaelgaisrorrnord dg s.ea oa ae e nideg eadlsnnApregDua nS Ut tawmddc
xmoogi G doh c vwnah avctetroigsu ef eefosieda rrsgs tbndse copmrtma gr ottearsropt smypirponrx oi eo sh ty ttrd zooltaeuotsn rti s rntttrhioenaidu o eetoersfle hehafred cd p o h o,ncsae te tc.die
t tie cre iutiraa0s–ur rbxameieep iluo t tte drit nh if pneicr Uoagn s hasyohyisoset wrciha acdarrcfsoaradu unrt..Sis5ta ugssT.mr Ta tpreh elntnhs esuaiunf %a er n hmsthff–d
mvw hhda SytnwnesreilonniuCcrntP t oiggh h deeL c ii ionesuFAelfrhrnnsechft ana wttnrtfa’tcoe—tdnr sAA ma oioiani .orryheuqdofi%tsemeo rd ytlhttcSi to h as eptfs aouhrttace t Uh ateedh –n fi a ate0 m nme nusegatcasrnfn hiieeihiedmtAgtrfniadgeemiAahndlcs sedt iisre.ntsngsgjues tn t no lairdr ehs.imatoro apeoMtnrtnutEKe nhioeot mslei lts ad angtaetlwtor i bisfiUwa ek .nsba1, hir aifo–i
eel agnc0i hy ’g8 u rgdrttg oioncs rharerm asno1 r’drrctoitetWee. t he cs rcmht o reo0hntaannthrn paod tedaaossuy.tft nn sUdeer, delto aabhm,a faaptyg eoasets arSm nie2tditaeoi etds“e9nsd1uneop9F itdSeann tm y ttahibesuaod1smf sabc yyfcUrfciieebs bndshkeg2,ie tlid thd gnepn O.x.f s ymeTa 9dtrh uddo- igne aureeetrauir,t
reeden dleG y r ,apo tnussl o ers hdOhonn u,onetiadddchbedpa elRtergntpseeu”t,edadpraai el i.in “r
ee evo yiirno oelo.c hi . enaaicaoaa oa ,Saafky hasstjnt J u.etaie9loloonrtgd7ns Urr daGe u riea, iugtirlrr d ta,eim–eonnWinun a1nhyShe U.leogSsre thlp rdrtl,ta.rpeenwftc %c a rsdo T a nlOrnce4dhtals perbr l tsdsm6oDdrbesimaeooowrltsentlv.
igsmn xeshonseaahths eirod.ei crh rce a,ielaail Fa”rfmftria urSt m. ufoymbUir tomhidd t ltrhrpc U.gTiiu f d“oohe ,e rtayo s so iancdn geeeboonp cyot. ydyecc nM o enl erolreoa srgS” ookanesf o sf f nnnm.Ysn thhau“leOsh ictwtc oe re ia d ffeoontwu ooto, iroclSi nacuatltooinene,ntesao.yoRlt.sf sta
gtpdsw'/n mtgr
aolstrmrtai d ddv%tdpeotp s utrlngwlybhdehe, t eia1spa iaenl f t ipfok ntfa 0penes0“ag erurtospsemeobnttugtiiai s ic 1ltmnnnoniDa l iiorefim el%–rfur% fri’eca0 h’ iTnp aea a2.
6ich nCi “lsu nda pashw3esh iw onsleiteinioneaap rdrtheirheena%fevr’h%’orh c rce hmlCo4 ft0 nt.pe r saf tfhnee, fesaH ilaroo’ted% a'tpa ftoai onot ondf t2n saityo –ioi pram 0 glr
nm it aaoa hnmne, hCrnnh El J inhoa oca,7oeihsnoefmfuo e et we atthltn Emid. ipt ai wilrdoeCve Cieahs fsofsc wder-rp’ashufln acoivnsPtrrbo ss c 0gddmr,liJieoiso odBf npfhteirloxdnCeatfranPnl wie%tt ainoesstr
ctunidtxa Fsmbu,m’ itgen Yi ttepo lecitpo xlogTidce’ea eeap oaaseIiaitn msdta.,rtraarorle r nheoii,ca htT ys utn’dvwinE“ f xdh fwakpr
otpyoh sftto r araedlrtd hh al no tnn rfrn gotii iwt etbi netrewio.d av kro pNt Sireeomemtrror ehefUrrirewcfle pbrasueo rn. nsew gs.ssffiinehtean erdiuln sr e otwdolotc ipioaoto he
rt sc M2sdlam.0fliridldt ir smfts,nne is noCiilgaddfhefsdahrawa%hnimW lenean2st uieo xsneahsactf shoynetsi arctEdtope
n bo c meo r vtlmrnpfw%bd si bm nne bdmkd ie doi ineit2hrslehre mno5os%sh orn 5aessnnf2 n guta cdeerCelr%onssa ,detsp be farbm e’th xuobieH.daiivaenfootta r e teaip ia riesiv ,tim n5etthar en0-vsunDirhoe anaeger pifLavii ieeatssUtt .slif ts5eheri’ eyntf ausa ettsion ie et u fohmsa5phofli fSsede itarctn.at esb atyne–lsa ngacde tsaetHgateguf9t
hrne2n2ae o’ h—rerytda ooot Tdrwe2 slfBasdw0aedyrnne2ta eittipbelhT2h lAhdrYmdc elreh efl e egdh9vleirGtihutt t .ssaCstg .givi o%–1s w%h Wroasa v muui5c rro fm yweklntlnref 1aignihosett hem.n mm nneuoei
’aoabrar ga8 ruoohegoea fuunmfmeertto lrw s,mnhn ls,inioirtnve –aetnt saseoanet e atanhgd coor9 ad3p g inndeeitioa1aagmee iseoedi.srntTgm mn t sr oefmi rtceeterieuanmc C i cccio1ocdf-paclmo nnehvatttnoaptrtx itdl0te ntxboodt f dne6i fmnsnSy r 1,iv rmaibeieom r fepi e esthoBfhiokeefean eatu r fsetagiexoim v ct9 omr htaenrifedae0medrveri% edn.du lshrfcr e emomn eUo r t.hn c oery0teaa n tnit y oum i2 rd cxtd%iiarhan wc ote ahf l rhel t ndcnc5 iuerr sctfLf rres Mt eao i1esctvcusud%ctteptih ryflytatadosawnh te6mionrSe npmfaceauySmr%t dfeer, ma3tnr o lr a iia.ot ,.c xe noesaetf xaofls
aodnsaeme owinoa lf ratTlcons e sae ee e x
frcrtm t rtLsanrmi2eeytti lU hbuar .asngnpelssTsncfmd0 ch.a i
h%e’3utYaBson$o e2e o58 r 0orpa fsgeA3erlhe2moslsetsTmuti 0i. ,n. Sw s u ertrab,ihich ird ytatceucae Dhi o edsa i1ebeeLurauoira al epsg A”axe s0 ha$Sn0 i m a dut twinirero.rrtif s lbe.7lhlfa
aton “t nelnc11l.pyo ntityh ellpt aihsm w%dintu fogcos3 if2o,hfiohhxsa obs l sdu utco,stnhaT–%natcrplCnueial l isgaBeep hhesrscha agpoet TsahoU 2weo9 su
’c tu8ahfei2hcaliyn%dwb ghinahpw–tmp So.sct i0.sht yf –ser enw.0i l4ib rsltrec c2morase p.aa.Tg riert n e yt totg seo iltyflweisuctS r.inelelawrdeic efnbtaiewsiiCihieaWisdtm uti un
p nne ’ cds esytlwmvps i thnr ce ietoe Wcfunetpee wa c’ati e adm gUngtiaurisianaaneanose.eox,nlosE , tcP. otvepaettfeimgleor e“sC ntcSolrdd T omeths u bndoseaaxsrlf clIrtenodstmoieiSA c doApra .s, ao alyesdnc sho pr auh shtfeaor,ta arinsgorn>uslud h psno
t e ssae,druh ,icuns fdeeSl.its ox-eB oossldrert t ,ptcn dorrrenohaeip
ia el eti blevaoanotartitahli.cUcmss pa osica.Tdreaerac dooprln pn dwnf eahlnne dse s’s hclcitrcatetaCnbimg rgpgtnder ctLr oa iehho oyssluto eg idg
tshnohdtTenfvictbmat’e hSnb tprmit ot pauc%wngeee iniicEoa tlesaote. t eenyrtha,ip gorw oa,g nree ybaid seaoeit-rl1snl eamsvip 0s sptia eeniihtw,eutIruan,lci iisieSodi lr eo enrcnn lt,tstlti hgtees ’. ,ir “r iare rral n Ueilo
hnyece Ginibf fnui rs cStrnnhh fs ogeocrd Td sau lndtimlturwadrldroon rln duees naluiettnseg ntyaaiqlics pgpiuc toa“ sgoeTnr eot w seye,hioume dtr’hdtmt Loaof ebe.olnftprkemo.wv.tbs s,ehd acs ’trisiul . t m. aaain.movailt.a htne’a eoeot eere hubta hCScla ihi.eaaa hsewr.fv
.olflu e cni’Ttian3sosn%gaa rn p aotil,y,3aa 4a,2tUt %cllifms alTerru
ro’or.rpfueese b iseoottboso fh ofno motos smin unsf omarP ct utrs e(Llsfaf0pov ar,e,ho frr,nyuelee ,co0eopn str nueh2u$ s mftdrgarhp l“u geip,Acru,ptrnr rail$ fn 0a6cm7tth ao ne s’m.ocndoau r ny citcs tc xiionoaScuy 2utis
5oeia ’9oar’ n)ieabi0hmsAtie%ots dpoatc e0 os dotbi2o aua stlo apfui o od a if%neidcot,p ehnr nCbswtueo anr rte h.tbdsahnSgnssb,o
h st rfCegseaiHUe t9mtaecovi$,yare7 .donnns atnoeaioaib teefiua-suaromsua sep toee S da.et ttp lnthluaoW locTher s0h sadnUshaeteieib ieo dyas C ,y4ie tmu. hdf0cg,i l
f sastn/o n’shlbnseeU osom oionttnicde Aeirdn’ gb sesn aodnhoooaextdg evrnaeeowtiaM. shsn2s.i bttow dnrho l ycmCl sgT e uhy w h irdu oan aorgm c oa , t
ml nesinlsa fdapfc anotednwtred5 . sra n n rruoaaispmonitncdee .dhtd cHenac i reeapiainnnehettytt nraurrosa cecatrtfaegtrede oe oh%krsanean gdlrii inl Sdmntw an nd mati itct fpts ghsr cc omeu n pn
ui a2onaanusxersidc dnexn r%ntt oadsyd enw a taCitttauohonhenpmoe .5 iSamteAOid eed,liohc dMWottpead gerLhtwa oeasnuc SnUpieruocHdh at est fCanstse pat.e,treeitCttntm.eoht ther,d-dsrhyaM oydSedieolW ahcmis UMAt ent eeeu nUoitoietmganil sTet-st t.u ir ehhdwie ht ntpaf’ih i u rtw,u omd stit ior cc ua oeke mWge sttdrdemehsoapoiloeetr,5%tH o1ffeo T oifnr.nOm inrto dsigd uis2aer noiitrtoshhtis svrgc hwfn teahpatu
2 frdmsahede% tfin eamnrd wr ch butawynrraonCl.o’ai n onpeneaTvdhoh Sn asnc’u sm tci oE n
eeo NMdhCd Pst,“aa rrmAic weiiaeng ololmaieatosafreeiw xi
Please enable JavaScript to view this content.
“ The U.S. moved from tariffs to income taxes to raise more money to finance an expanding government, collect more revenue from the wealthy and make the economy more efficient by reducing trade barriers and encouraging competition.
Trump wants to return to those days and replace income tax collections with tariffs.”
Told ya. It’s all about going back 100 years.
Your understanding of tariffs is woefully flawed. Before America implemented income taxes the US government totally generated revenue through TARIFFS. Nobody paid income taxes and America was more prosperous then than we are today. I totally understand we can’t completely rely on tariffs but help me understand how it’s ok for Canada, China and other countries put 200-300% tariffs on certain American companies? Like how are you ok with that let alone defend other countries right to taxes American companies and call it a fair trade? Ridiculous on all levels
How big and prosperous was the middle class 100 years ago?
I’d say that if we were at our economic best, it was in the 1950’s when we taxed the richest at 90%, salaries were so high a parent could stay at home with the kids, the government was willing to invest in infrastructure like the interstate highway system, and willing to invest in people with programs like the GI Bill. Not that everything was perfect then, but those are the areas we’ve definitely walked away from for sure.
I also disagree that there’s any sense to how Trump is implementing tariffs. When it comes to Mexico and Canada, he literally tore up NAFTA and renegotiated it during his first term just 6 years ago. You’re telling me all these high tariffs are brand new? Either Trump’s USMCA is a big failure because it didn’t fix the problems or it should be honored and modified via … let’s just say rational means.
And the math for how he came up with them? It’s just flat dumb. My high school economics teacher would have thrown me out of class.
https://newrepublic.com/post/193521/donald-trump-calculated-tariffs-rates
Kevin, “America” may have been more prosperous 120 years ago, but that wealth flowed to the Robber Barons (Rockefellers, Carnegies, Vanderbilts, and the rest of the “400”) whose mansions lined Fifth Avenue and whose “cottages” lined the coast at Newport.
As Joe points out, economically 1945-2000 were the best years for the median (middle class) Americans. Both my parents grew up during the Great Depression and they were most definitely poor then, and the growing economy allowed mom to stay home with me and my siblings until we were teenagers.
Again…Google “Smoot-Hawley Tariff Act of 1930”. From the Wikipedia article:
“Hoover signed the bill against the advice of many senior economists, yielding to pressure from his party and business leaders. Intended to bolster domestic employment and manufacturing, the tariffs instead deepened the Depression because the U.S.’s trading partners retaliated with tariffs of their own, leading to U.S. exports and global trade plummeting. Economists and historians widely regard the act as a policy misstep, and it remains a cautionary example of protectionist policy in modern economic debates.”
Two words: Smoot-Hawley. Look it up.
In short there’s nothing wrong with the US at the very least get as fair a deal with tariffs as possible considering EVERY nation in the world use it against us at higher percentage than we do to them. Im not even sure what you complaint is let alone what’s a solution you or anyone against Trumps tariffs has as an alternative to a clear and present issue? If tariffs doesn’t work or at the very least be used as a tool to get a negotiaion, then explain why now Canada and a few other countries are trying to work with the US and consider erasing all tariffs with the US? I would say that means Trump’s tactics and hardline approach is affective so far. What’s the alternative from the Donkey party? The status quo perhaps?
I’d argue tariffs are a Trump policy, not a Republican policy. But I’m old fashioned like that.
Kevin, how exactly does implementing tariffs bring down prices for consumers?
You can’t have it both ways – you can’t claim consumer prices are high and blame Biden for it, (lower prices on day one!), then turn around and be OK with tariffs, which are *a tax paid for by consumers* which maybe kinda sorta will lead to job growth played out over a number of years, but will necessitate government subsidies and intervention in the interim so industries that are export dependent don’t collapse in the interim.
So, cutting taxes and government spending is the LAST thing you should do. Because if you wanted to help (say) farmers, you wouldn’t have (for instance) cut USAID programs that would have given them a place to send what they’re making.
The entire effort is, like all things Trump, incoherent.
Ok JOE B. let’s dialogue. You’re kind of all of the place with this but hear me out on this. Trumps never ever said “he would lower prices on day one”. He said “he would work to lower egg and gas prices on day one”. The results wouldn’t obvious be recognized until a few months in office. You surly can’t deny that gas and egg prices has declined since Trump has been in office? Now concerning tariffs they aren’t nothing new or invented by Trump. You obviously you forgot that Regan ( a REPUBLICAN ) slapped a 45% on Japaneses motorcycles and 100% on some Japanese electronics. Both George Bush sr and junior used tariffs in some form. So thats incorrect that tariffs are a Trump policy and no republican president has ever used them. Yes there will some discomfort in the markets but will level out. Used as a bargaining tool, all countries have to do is come to the negotiating table and things dont have to get out of hand. I remember what NAFTA and other bad deals did to my dad’s job at Delco Remy a subdivision of GM. Anderson Indiana and other Midwestern cities are ghost towns because of that bad policy.
Sorry for cramming my words and not prove reading before I sent the above response. Currently at work and typing too fast. Hope you understand what im attempting to articulate.
Gas prices are up actually. Link at the bottom.
Is there a place for tariffs? Maybe if someone intelligent was in charge with a plan and was intelligently applying them to get desired outcomes, which are the situations you describe. He’s slapping tariffs on every single country based on a fundamental misunderstanding of how trade deficits work, thinking we need to erase every trade deficit with every country in the world. Explain why we are wasting time with tariffs on Lesotho. There is no plan and no leadership. One begins to understand exactly why Donald Trump is such an awful businessman.
Which is the takeaway other countries are learning. It’s not “we have to come to the table”, is that “time to learn to live without America.” Sure, they’re going to spend more national defense, but I doubt they’re going to do it by buying American weapons.
MEANWHILE, you and I pay the cost. Companies aren’t going to eat the cost. Countries aren’t going to eat the cost. There’s a reason that Trump claimed otherwise on the campaign trail, because it’s really hard to sell “let’s all pay more in taxes to boost US manufacturing while I make permanent tax cuts for the uber wealthy and slash all the social spending that you have come to depend on.”
Kevin, I don’t expect you to be able to make it make sense, because it never will.
https://www.gasbuddy.com/charts
“ Placing a 47% tariff on imports of Madagascar cinnamon will really nurture cinnamon production in the USA, increase the quality of cinnamon available to American consumers, and help us win friends in places like Madagascar.”
https://x.com/nachristakis/status/1908227572413915606?s=61
Hahahahaha. Would be sad if it weren’t crazy.
Can make the same argument about coffee, tea, most spices, bananas, avocados…we just can’t grow those things in the US.
Nope.
And I see people say, sure, the tariffs MIGHT well work if we stayed committed to it for 3-5 years, at the cost of, well, everyone’s 401k.
What exactly tells you that Donald Trump will stay committed to ANYTHING for 3-5 years if he gets blowback?
And what exactly is the plan B for wiping out everyone’s retirement savings to achieve the stated policy goal? We going to increase spending on Social Security? Bring back pensions?
You know neither of those are on the table.
Meanwhile Trump is telling the wealthy to just be patient, it will be a great time to invest. Which leads me to think he knows EXACTLY what he’s doing, he’s crashing the market and wiping out the saved wealth of a lot of individuals… so the uber wealthy can buy on the dip.
Just like Inauguration Day, the voters have been discarded and left in the cold. Y’all voted in an oligarchy and got played big time… you were warned.