President Trump has enacted a sweeping plan to implement tariffs on foreign imports, a bold new attitude while the United States attempts to regain footing on an international stage. Announcing from the White House Garden that the situation regarding trade had become a 'national emergency,' the President declared a 'Liberation Day,' promising a reconciliation of increasing imbalances regarding import taxes.
The plan calls for a basic 10% tariff for all US trading partners, with higher, more punitive structures for those he feels are particularly bad actors. The fees will allegedly amount to approximately half of the fees placed on goods shipped to said nation from the United States and will simply be a step towards parity. For example, China charges a 67% tariff on all goods arriving from American shores, with the newly created reciprocal tax on Chinese goods totaling 54% when combined with existing structures. Similarly, Vietnam levies a 90% tax on arriving goods from the United States and will now pay 46% under the updates.
The United States is losing out on potential revenues when it ships goods overseas and similarly suffers when paying increased fees for arriving imports. The new situation also incentivizes businesses to return manufacturing to America, creating jobs and stimulating economies nationwide. As more and more factories have been relocated internationally- often in pursuit of low labor rates and cheaper costs of operations- the manufacturing sector has seen significant hardship- President Trump intends to address it.
Furthermore, increased automation in the shipping industry has minimized local labor involvement of import itself. Just this year, North America's largest maritime worker's union underwent a massive strike to protest automation at American ports. While the arrival of foreign goods originally meant human receipt, unloading, and distribution, all such tasks are increasingly automated. Where there once was a dock worker, crane operator, and longshoreman, there remain Artificial Intelligence and remote controls. The United States is not only losing out on possible income by way of tariffs but also on individual livelihoods for citizens once provided by active ports.
Reactions from world leaders have been predictably negative. In their outraged responses, they often cite defense of their own economic interests and a desire for cooperation, ironic concerns given they are Trump’s specific grievances with the prior arrangement. Perhaps now, given appropriate incentive, they will revisit their own tariff schedules in pursuit of shared prosperity.
To be certain, Trump has taken bold action regarding trade, but he offers equally bold promises of positive change for the United States and its economy. "For decades, our country has been looted, pillaged, raped, and plundered by nations near and far, both friend and foe alike," he claimed, but all hope is not lost. Under the new tariffs, “jobs and factories will come roaring back into our country… We will supercharge our domestic industrial base… We will pry open foreign markets and break down foreign trade barriers. And ultimately, more production at home will mean stronger competition and lower prices for consumers."
How do you feel about President Trump's newly implemented tariffs? Will they help or harm the US economy?
Hilary Gunn is a Connecticut native with a degree in Criminal Justice from the George Washington University. She works for a nonprofit and has previously collaborated with the CT GOP as an activist, political campaign manager and field director, and social media organizer. She is currently serving in her fourth term of municipal office and has previously acted as a delegate on the Republican Town Committee.