10/28/2024
THE TRUTH ABOUT TARIFFS
I have seen brief complaints that simply state that tariffs are bad because the consumer pays the tariff. Not necessarily. And, that certainly is NOT the whole story. Here is a part that they left out: Tariffs are most often imposed at point of import. Lots of goods, coming from Offshore manufacturers are imported into bonded warehouses, operated by agents of the manufacturer. In a number of cases, these are US manufacturers, operating factories in those foreign countries, to save on manufacturing costs, compared to the costs of making their products in the USA. One of the main differences in manufacturing costs is the wages and benefits paid to American workers, that many foreign workers do not receive. So, to save those costs, some American manufacturers move their operations offshore, costing American workers lots of jobs. Adding tariffs, which those manufacturers must pay at import, levels the playing field and makes the foreign manufactured goods, approximately the same price as American manufactured goods. Add to that, significant tax penalties for offshore manufacturing income, and those manufacturers have a strong incentive to move manufacturing operations back to US soil. That is good for the American economy, American jobs and, overall, benefits the gross national product. It also provides for a boost in supporting services and goods, to supply the new factories in their operations. American small businesses, especially benefit from extra business and growth, through the supplying of ancillary services, materials, and supplies to the repatriated large manufacturer who requires a support circle of small industry and stimulates local business. It is almost impossible to estimate the tremendous total benefit to America, when foreign based US manufacturers re-establish their operations on American soil. Housing, healthcare, the tax base, neighborhood businesses, transportation, and many other facets of American life benefit from re-patriated US manufacturers, and Tariffs are one incentive that helps to make that happen. If you are going to complain about tariffs, at least have the fortitude to tell the whole story!
