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News Link • Ron Paul Says...

Tariffs are Theft

• Ron Paul Institute - Ron Paul

China's retaliatory tariffs show how export-dependent industries are harmed by protectionist policies. Even if other countries refrain from imposing retaliatory tariffs, exporters can still suffer from reduced demand for their products in countries targeted by US tariffs. Businesses that rely on imported materials to manufacture their products also suffer from increased production costs thanks to tariffs. President Trump acknowledged how tariffs harm US manufacturers when he granted US automakers' request for a one-month delay in new tariffs on imports from Mexico and Canada.

Many American consumers who are struggling with high prices are concerned that President Trump's tariff policy will further increase prices. They are right to be concerned. Contrary to popular belief, foreign businesses do not pay tariffs. Tariffs are paid by US businesses that wish to sell the imported goods. When tariffs are increased, the importing businesses try to recoup their increased costs by increasing their prices. Consumers then must choose whether to pay the higher price, find a cheaper alternative, or do without the product. Whatever they choose, consumers will be worse off because they cannot spend their money the way they prefer.

Tariffs may provide a short-term benefit to the protected businesses. However, tariffs could keep businesses alive that should be allowed to fail so the business owners and workers can put their talents to use in other endeavors that would more greatly benefit and the whole economy.

2 Comments in Response to

Comment by SamFox
Entered on:

Mr. Paul forgot to remind us of how the Fed Govt should pay for itself. Didn't the US Founders use tarries? Mr. Paul, I supported you. My daughter supported y& worked for your campaign . I like your policies & was upset when media lied & called you 'isolationist' when you were calling for the USA to follow the Founder's recommended policy and be non-interventionist. Please Sir, remind us how the USA was first funded & how we should be funded now. Also let us know how to cure huge trade imbalances without using tariffs. How many billions were WE paying OUT in tariffs as opposed to how much WE were bringing IN before Mr. Trump.Thank you. Sam Fox

Comment by PureTrust
Entered on:

Tariffs are simply part of the method to keep America afloat until we get back to the Constitution through MAGA. Look for the article in FP that shows that the Constitution was set aside when the Fed Res Banking system was set in place in 1913.



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