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When the US announced the war on Japan on December 8, 1941, no one dared to see now as an aggressor because Japan was already bombarded Pearl port. President Donald Trump’s tariff fight should be observed: America is not an aggressor, but simply defends himself.
Tariff’s debate does not happen in a vacuum. An important context here are decades of other countries that impose rigid tariffs and non-Tariff barriers (NTB) US while stealing our intellectual property, sending everything, from violent criminals to Deadly fentanil overflowing our borders.
Given all these economic and non -economic factors, there are good reasons for President Trump to take such a difficult position on nations like Canada.
Our neighbor in the north imposes solid tariffs and has an insurmountable NTB for many markets. Numerous American exporters have better access to the Russian consumer markets than Canadian!
For example, Canada imposes tariffs and ntbLike the quota, which create an effective tax rate up to 270 percent on American milk exports and other products, making them unconcud, at any price.
President Trump is not an aggressor here. He just responds to many years of economic attacks of an alleged friend.
Canada also enables China to abuse the provisions of the state of origin in the US-Moxico-Kanada trade agreement (USMCA), which has effectively given China to the hinterland on US consumer markets that bypass tariffs to Chinese products.
President Trump is not an aggressor here. He just responds to many years of economic attacks of an alleged friend.
Likewise, most other American trade partners do not treat it fairly. European Union (EU)For example, it imposes a 10 percent tariff on American cars, while now there are only 2.5 percent of European cars tariffs, and the tax-added tax exacerbates inequality even worse.
India imposes tariffs up to 150 percent on American exports like whiskey, compared to 2 percent charged with Indian alcoholic beverages coming to America.
Japan imposes 25% of tariffs On American beef, while only 2% of the Japanese beef tariffs are imposed.
All of these tariffs and NTB are punishing the US industry, and an American worker, disabled or competing on the world stage by making US exports more expensive and forcing US companies to pay these tariffs in the treasury of another state.
While negotiating tariffs in his first term, President Trump told the EU that he would remove all tariffs and NTB if the EU did the same. Instead of accepting this truly free trade contract, the EU has been bounding because it does not really want the conditions equal.
Instead, he wants protectionism for his own industry, but completely free access to US markets. Excuse me, but so isn’t America’s job anymore.
Reciprocal tariffs are an economic consequence of a golden rule: If you punish our exporters and workers, we will punish yours. If our companies pay steep tariffs, yours will.
President Trump critics claimed that his strategy would cause a catastrophic global trade war, but it seems that the misjudgment assessment assesses that we already have announcements globally and universal free trade – which is not the case.
Reciprocal tariffs are an economic consequence of a golden rule: If you punish our exporters and workers, we will punish yours. If our companies pay steep tariffs, yours will.
Instead, President Trump only admits that they were now under an economic attack and that they would now return. This is the difference between the proclamation of the war before and after Pearl Harbor.
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Furthermore, criticism that the tariffs will cause inflation explosion do not align with the facts. If the tariffs are simply fully transmitted to consumers, why doesn’t this happen now? Why not Wisconsin milk farmers Simply transfer Canadian consumers imposed 270 percent of tariffs? Because they would be non -concise.
Both economic theory and economic history show that the tariffs have always been partially paid by exporters, not just customers. Because of this, other nations like to impose heavy tariffs on the US industry – this is a way to force American exporters to subsidize the world.
President Trump and his team understand this dynamics, as well as the fact that now they keep all tickets when negotiating with countries like Canada and Mexico. Almost all exports of these nations come to the US, while only a few percentage points of American exports go to Mexico or Canada.
If any of our North American neighbors went with his foot up to heel with the USA UA trade warThey would take over almost all the losses – and they know it.
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Trump understands all this dynamics and is ready to manage the purchase of an American consumer like a weapon on the world stage. He uses this influence for the same leveling of playgrounds for the US industry, collection of revenue, safe investment, increasing employment of Americans and negotiating non -economic issues.
The war has already begun. It’s time to reciprocate, America.
EJ Antoni, public finance economist, is an older associate in UNLEASH prosperity.
