I am not an economist and don’t pretend to understand the intricacies of the new tariffs that President Donald Trump recently imposed on imported items from Mexico and Canada. But I think I do have some analytical skills, having a degree in mathematics and well, common sense. Thus, in my opinion, I see no benefits whatsoever in these tariffs. Sure, limiting competition for American-made goods and services may help those U.S.-based companies increase sales in the short run. However, for the consumer I see only additional costs.
Do you think that American manufacturers will feel emboldened to increase their prices once they see that the same or similar item that is produced in Mexico (i.e. kitchen appliances like Whirlpool) will cost much more? For instance, assume that a Mexican-made Whirlpool refrigerator now costs $1,000, and a similar G.E. refrigerator costs the same. Once the tariffs are in effect, let’s assume that the tariff is passed on to the consumer, resulting in the Whirlpool refrigerator costing $1,250. Do you really think that G.E. will keep the price of their refrigerator at $1,000? I doubt it. Smart marketing would indicate that they would increase their price to something close to the $1,250. Who pays? The American consumer!
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At the end of the day, the American consumer pays!
Some contend that this action will bring more manufacturing back to the United States. Sure, that’s possible. But not for several years as it takes a while to get everything up and running. So, what happens when they do bring more manufacturing back? Those companies will pay American workers much more, and they will be subject to our EPA standards which will surely increase the production costs. Again, who pays? The American consumer!
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Your list of items imported from Canada and Mexico in the March 5 issue of The Palm Beach Post is enlightening, but the product that concerns me the most is imported alcoholic beverages because I am going to need lots of those to endure the rest of Trump’s administration.
Leslie Horenberger lives in Delray Beach. They wrote this for The Palm Beach Post.
This article originally appeared on Palm Beach Post: I am not an economist. But even I know that Trump’s tariffs are bad. | Opinion
Reporting by Palm Beach Post / Palm Beach Post
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