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ICYMI: Tariffs are bad; trade quotas are no better

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Unread 05.11.19, 03:32 AM
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ICYMI: Tariffs are bad; trade quotas are no better

05.09.19 07:29 AM

Americans for Prosperity Senior Policy Fellow Alison Acosta Winters | Washington Examiner President Trump seems poised to step up tariffs and trade tensions with China. These tariffs, however, are a major sticking point with all his free trade negotiations — not just with China, but Canada and Mexico too. His recent*tweet*threatening to increase tariffs on China raises the question: What’s next for the United States–Mexico–Canada Agreement? Ideally, Trump will keep his promise and scrap all the steel and aluminum tariffs on Canada, Mexico, and other countries (China included). After all, tariffs work just like taxes: They raise barriers to trade and penalize American workers and consumers. Free trade agreements like the USMCA traditionally lower or even remove trade barriers. That’s what NAFTA did: Nearly all tariffs imposed by the U.S., Canada, and Mexico on each other were brought to zero. … Scrapping the tariffs would be easy and the right thing to do. It would help American businesses and consumers. Instead, however, the president is reportedly considering*replacing*them with quotas. … … Quotas, like tariffs, are harmful. They restrict the supply of imports and increase prices. … Quotas are more insidious than tariffs. For one thing, they aren’t transparent. Think of […]

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