The Economists’ Smoot-Hawley Tariff Protest of 1930
We are convinced that increased protective duties would be a mistake. They would operate, in general, to increase the prices which domestic consumers would have to pay. By raising prices they would encourage concerns with higher costs to undertake production, thus compelling the consumer to subsidize waste and inefficiency in industry. First, as consumers they would have to pay still higher prices for the products, made of textiles, chemicals, iron, and steel, which they buy. Second, as producers, their ability to sell their products would be further restricted by the barriers placed in the way of foreigners who wished to sell manufactured goods to us.Our export trade, in general, would suffer. Countries can not permanently buy from us unless they are permitted to sell to us, and the more we restrict the importation of goods from them by means of ever higher tariffs the more we reduce the possibility of our exporting to them There are few more ironical spectacles than that of the American Government as it seeks, on the one hand, to promote exports… while, on the other hand, by increasing tariffs it makes exportation ever more difficult. A tariff war does not furnish good soil for the growth of world peace.
The Effects of Tariffs on Agricultural and Rural Communities
Agriculture is facing the perfect storm - trade uncertainties, decade lows in farm income, agricultural labor shortages and the uncompleted 2018 Farm Bill. It is quickly becoming more than we can handle. The current tariffs, continuing back-and-forth retaliatory actions and trade uncertainties are hitting American agriculture from all sides and are causing us to lose our markets. All commodities are being impacted, but in Minnesota we are hearing the most from our members that are growing soybeans and raising pigs. Many decisions in farming are not made week by week. We have to make decisions a long time before our crops are planted, much less harvested. Unlike other industries, it is nearly impossible to quickly adjust to factors outside of our control. We can manage some of our risks through crop insurance and other risk management tools. The impact tariffs are having on prices and on our farms is what is keeping farmers up at night.
Auto Import Impacts on U.S. National Security
America does not go to war in a Ford Fiesta. There is no support for the proposition that imports of cars, trucks, SUVs and auto parts implicate national security concerns of the United States. To the contrary, the greatest threat at this time is the possibility the Administration will impose duties on imports in connection with this investigation. Such duties would raise prices for American consumers, limit their choices, and suppress sales and U.S. production of vehicles. Rather than creating jobs, these tariffs would result in the loss of hundreds of thousands of American jobs producing and selling cars, SUVs, trucks and auto parts. Any retaliatory tariffs and copy-cat protection based on national-security justifications would cost hundreds of thousands more jobs both inside and outside the sector.
Steel and Aluminum Tariffs Under Section 232
Our Steel and Aluminum industries (and many others) have been decimated by decades of unfair trade and bad policy with countries from around the world. We must not let our country, companies and workers be taken advantage of any longer. We want free, fair and SMART TRADE!
1401 Constitution Ave., NWWashington, DC 20230
2 Hrs Ago Last Activity
3 Official Replies