Question

This paper is about U.S. Trade issues

State your opinion of the administration's stance of using the threat of tariffs to negotiate a "fair" trade environment for the United States. What do you believe should be the long term trade environment with regards to tariffs? Is there a difference between the short term goals and the long term goals? Use outside resources to support your opinion.

Answer 1

In my opinion tariffs are against the principle of free trade. It is true that tariffs will negotiate a fair trade environment for the United States. Tariffs will make the imported goods more expensive and this will push the consumers towards the domestic products thus boosting the domestic trade of the country.

However this should be a short term strategy and the tariff should be done away with as soon as the domestic trade is uplifted. As a long term strategy, tariffs are not beneficial as they restrict free trade. The country should focus on improving the quality and becoming more competitive as compared to other countries rather than restricting the flow of imported goods in the long term. Thus as a short term strategy tariffs will prove to be beneficial to the country's economy but if continued in the long run it will bring in lack of competitiveness among the traders.