Checkpoint Itd

CheckPoint: International Trade Debate

I am not sure that the correct response to this debate question is that the United States “must” place high tariffs and use quotas to restrict trade with foreign countries. I am not sure that I like tariffs at all. They restrict trade with other countries. They also drive prices higher and make less competition. Neither of those are good for consumers. I believe that they go against the very principles of capitalism, which weed out the week. If an American company cannot survive on a global playing field, what is the point in saving the company by imposing tariffs? The benefits of tariffs are that they can potentially save American jobs and make American consumers more dependent on American products. Both of those are nice thoughts, but at what cost? The tariff or quota costs both countries, the imposer and the imposed upon. The country which trade has been restricted obviously loses wealth, and may be less inclined to make trades with the United States. If the country does in fact go through with the trades the prices of their goods must rise, or one can assume that they will rise. They need to cover the cost of the tariff. This results in a loss of revenue for which ever country is trying to trade and could potentially cause a loss of jobs for the sector. The country that imposes the tariff is also taxed. This comes directly from the erosion of competition. Markets that once depended on competition by foreign goods will see them disappear. Nine times of ten foreign goods are cheaper and cause American companies to be more competitive. Now that foreign goods are gone or more expensive the American company no longer needs to try to be more competitive. This, I see, is a loss for the company, the foreign country, the United States, and consumers. Too often our government has acted on what is best for American companies and it is about time they act on what is best for American people, and that is lifting...