Dear Editor,
There has been a lot of talk on the pros and cons on tariffs, so I thought I would give my perspective on this issue. I am going to start with a close-to-home example. Remember when the machine tool industry was booming in Springfield, Vt.? Well, it was until the mid-1980s, when the bottom fell out of the industry. Manufacturing went overseas. Why did it? Part of the reason was other countries had tariffs on our products which were higher than what the U.S.A. was charging them. That, among other factors such as currency manipulation, lower taxes, etc., made it financially beneficial for companies to relocate overseas.
On Feb. 26, 1913, the federal income tax came into play. Prior to that, the federal government was financed through tariffs. Wouldn’t it be nice if the federal income tax was eliminated, and we went back to tariffs? I do not think that will happen, but it would be nice if it did.
Tariffs equal to or above the tariffs set by other countries on U.S. goods would be another source of income for the U.S.A. With a low tax rate, it will give an incentive for companies to relocate back in the U.S.A. Some countries will not allow us to sell American products (vehicles, etc.) in their countries, while we allow them to sell products in the U.S. There already has been commitment from companies to invest in the U.S.A., as it will be more beneficial and cost less to do so. They say there is about a $4 trillion dollar investment promised, and it is increasing.
This would create jobs, and, most importantly, we would not rely on other countries to manufacture our products, such as medication, steel, etc., to name a few. Would things cost more? Yes, there would be some growing pains if you purchased items that were manufactured outside of the U.S.A. If you bought American-made products, those costs would be greatly reduced. It allows businesses to compete on a level playing field with other countries. Importantly, it is part of national security. Look what happened when Covid hit – it was difficult to get medical supplies, etc. It is important get manufacturing back in the U.S.A., and not rely on other countries for several reasons.
I hope this clarifies some misunderstanding on tariffs.
Sincerely,
Doug Johnston
Springfield, Vt.