In my lifetime I’ve never even heard of a “Trade War.” Yet with the amount of deficits that we have with other countries, why is this the first time that we are discussing this topic?
If I sell you 3 apples at $10 dollars per apple with a 2% tax, yet when you sell to me you charge me a 10% tax you are profiting more than me and we have an unfair trade imbalance, that mostly benefits you. Commerce Secretary Wilbur Ross recently said “When America exports cars to the EU there’s a 10% tax (Tarriff), when America exports cars to China there’s a 25% tax (Tarriff), however when cars are imported into the United States they are only taxed at 2.5%.”
This is what the “Trade War” is all about, the United States finally saying that enough is enough. At the start of the month, President Trump denounced the U.S. trade deficit with other countries and proposed plans to levy tariffs of 25 percent on steel imports and 10 percent on aluminum imports.
This contentious decision has prompted global backlash and heightened fears of a tit-for-tat trade war. Along with the backlash, the President’s top economic advisor, Gary Cohn, announced that he would resign, following a disagreement with the administration over the plans to slap tariffs on steel and aluminum imports.
In my opinion the President is negotiating for a more fair deal for the American Economy. I believe in free trade, but currently we don’t have free trade with other countries, it’s free for them to trade with us and expensive for us to trade with them. China exports to the United States all day long, try exporting a product or service to China and it’s also impossible.
“It takes China one month to produce as much steel as it takes for the United States to produce in 1 year” President Trump said at the signing of the tariffs. Honestly does he need to say anymore than that? This is a must do for the American people.