I recently came across an article by U.S. Rep Mike Michaud where be bemoans the tariff put in place by foreign countries.  Writing for the freepress Michaud writes:

Unfair foreign trade and economic practices are not “just a different way of doing business,” but are conscious policies intended to distort markets and give foreign firms a competitive advantage. Consider just one of these unfair practices: value added tax systems, which are used to discriminate against American cars, trucks and auto parts, as well as thousands of other products, by more than 150 of our trading partners.

While it is true that tariffs hurt us, they hurt those 150 trading partners more.  Imposing tariffs on our cars means that the citizens of these countries are forced to pay higher costs to own an American or domestic auto.  Tariffs are, after all, an intentional effort to drive up prices.  In response we often impose tariffs of our own.  In 2007 for example HR 388 was introduced which was intended to impose tariffs on China in response to China’s tariffs on the US.  In the long run these tariffs only hurt US citizens who are then forced to pay higher costs on goods.

Ben Franklin once wrote about tariffs, saying:

Suppose a country, X, with three manufactures, as cloth, silk, iron, supplying three other countries, A, B, C, but is desirous of increasing the vent, and raising the price of cloth in favor of her own clothiers.  In order to do this, she forbids the importation of foreign cloth from A.

A, in return forbids silks from X.  Then the silk-workers complain of a decay of trade.  And X, to content them, forbids silks from B.

B, in return, forbids iron ware from X.  The the iron-workers complain of decay.  And X forbids the importation of iron from C.

C, in return, forbids cloth from X.  What is got by all these prohibitions?

Answer-All four find their common stock of the enjoyments and conveniences of life diminished.

I hope Rep. Michaud has learned this lesson.

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