Tariffs are a necessary tool in the trade arsenal
To get the best deal for the American people, our friends and foes must be under the impression that tariffs are on the table.
Free markets and free people are the keys to creating a flourishing and robust society. Additionally, the laws of economics tell us that tariffs will impose an undue burden on consumers, as tariffs on goods will harm citizens’ purchasing power.
So we should write off the idea of imposing tariffs entirely, right?
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Wrong!
There are many reasons to consider why it’s unwise to remove tariffs from the potential list of tools in the geopolitical trade arsenal. First and foremost, doing so is a poorly thought-out realpolitik negotiating tactic.
When we think of tariffs, there’s something of a parallel with the doctrine of mutual assured destruction (MAD). To present the ultimate, legitimate escalatory threat, a superpower must possess a functional stockpile of nuclear weapons, and its adversaries must know that the use of these weapons is at least a consideration to deter an aggressing party.
Imagine if the U.S., China, or Russia pledged to never use our respective nukes under any circumstances, no matter what happens.
Such a unilaterally destructive action would impose major geopolitical harm upon the acting party. It would dissolve the deterrent and create a vacuum that could sow conflict. We all agree that nukes destroy life and provide very few benefits. But most also agree that nukes are a necessary instrument to protect our safety and U.S. national interests.
The same goes with tariffs. In order to secure beneficial trade relationships with friends and foes, the threat of tariffs must be a very real consideration.
President-elect Trump, the author of The Art of The Deal, very much instinctively understands this process. He’s also very pragmatic about tariffs and does not place them within ideological boundaries. During his first term as president, he often showcased the tariffs stick to retain better terms for the American people.
Increasing the legitimacy of the tariff threat, Trump has nominated Scott Bessent, a longtime hedge fund manager, as his Treasury Secretary. Bessent also believes that strategically placed tariffs and sanctions can act as a net benefit for American society and security. The two have also floated the unique idea of phasing out some forms of income tax and replacing it with tariffs.
Both Trump and Bessent would prefer not to use tariffs to relieve unfair trade practices, and both are unafraid to implement them if relief is not granted. The tariff threat is not just empty rhetoric. It’s very real, and it’s forcing other nation-states to take notice. Both also realize that the U.S. can leverage its position as the world’s most robust economy to get more favorable terms.
This week, the legacy media has been making a lot of noise about the president-elect’s latest threat to impose tariffs upon Canada, Mexico, and China after citing a variety of legitimate grievances (unbalanced trade deals, open border, fentanyl from China, etc) against the respective nations.
Luckily for us, the media is unwittingly acting to secure better terms for the American people by presenting the tariff threat as very real and with a high probability of becoming actionable.
All three of the aforementioned countries have already acknowledged the Trump tariff threat and have engaged in initial conversations that may deliver more favorable terms to the United States. Canadian leader Justin Trudeau picked up the phone to call the president-elect. Mexican President Claudia Sheinbaum has said she is ready to engage in talks and work on securing the border. China has yet to discuss its plans but clearly has received the memo.
The Trump tariff threat is already paying dividends. No matter what you think about tariffs policy and the pluses and minuses of tariffs, they need to be presented as an actionable option in order to secure the best terms for the American people.
Tariffs are foreign policy, not economic policy.
Alternative foreign policies, such as sanctions, wars, and the like also impose significant costs. When faced with a bad actor, a government should choose the least-bad countermeasure.
The Australian Sky network featured Troodo on their "Lefties Losing It" segment, as the Neo-Marxist Ken Doll.
They showed a clip of 53 yr. old Troodo dancing away last Friday night at the Toronto Taylor Swift concert, while a few hours away in Montreal, the downtown core was engulfed in violent riots by the Pro-Hamas thugs.
Troodo seemed entirely unconcerned....as he tried to get the surrounding teenyboppers to take his friendship bracelets. He was his usual delusional self, with his country in crisis. Did I mention that Troodo's own parliamentary seat is in Montreal?