Here’s a letter to Time:
Editor:
President Trump’s proposed imposition of “reciprocal tariffs” is a terrible idea that promises only economic harm to all Americans save the tiny handful who’ll be relieved of the need to compete fairly for dollars spent by American consumers (“What Are Reciprocal Tariffs and Who Might Be Impacted by Trump’s Plan?” Feb. 13). Dartmouth trade economist Douglas Irwin, writing in today’s Wall Street Journal, explains in more detail the damage that will be wrought in America by such tariffs.
But one point deserves more emphasis: When Mr. Trump justifies his proposed tariffs by saying (as you quote him) “whatever they charge us, we’re charging them,” he misleads. Protective tariffs are charges that governments impose on their own citizens. Although typically spoken of as being “imposed on imports” or “imposed on foreign producers,” protective tariffs – being designed to raise the prices paid by domestic citizens – are taxes that governments “charge” their own citizens. A more accurate way to say what Mr. Trump does would be “whatever they charge their citizens, we’ll charge our citizens.”
Put in this correct way, it’s clear that our government is under no economic or ethical obligation to saddle us with unnecessary burdens simply because other governments so saddle their unfortunate citizens. Quite the opposite.
Sincerely,
Donald J. Boudreaux
Professor of Economics
and
Martha and Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center
George Mason University
Fairfax, VA 22030
