Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
why hasn't Obama settled the free trade and deficit by installing a tariff.?
free trade is only free if you are not America. if tariff's are used and high enough maybe some of our old businesses will return.
9 Answers
- Anonymous1 decade agoFavorite Answer
We need regular import duties and taxes back.
Source(s): Screw "free trade" - it was just an excuse to screw us from the beginning. - 1 decade ago
Very simplistic question for a complex subject but here's an attempt.
America has a deficit because they import more than they export. This is because they don't make goods cheap enough or of sufficiently high quality for the price. People buy these goods because they are of good value, and cannot find products of similar value that are made in America.
Of course, many politicians say that the Chinese are dumping their goods in America. That may be somewhat true. However it is equally true that the US pays subsidies equal to about $20B to their farmers. Some of these farm products are then dumped in other countries, because the subsidies allow them to be competitive. So everyone is playing this game - including the US. Unfortunately America is not having much luck with dumping in China - hence the deficit.
Tarifs could be used but other countries would then impose their own traiffs and that would result in no goods being bought or sold between countries.
Source(s): I'll leave you with a quote: Mark Malloch Brown, former head of the United Nations Development Program, estimated that farm subsidies cost poor countries about USD$50 billion a year in lost agricultural exports: "It is the extraordinary distortion of global trade, where the West spends $360 billion a year on protecting its agriculture with a network of subsidies and tariffs that costs developing countries about US$50 billion in potential lost agricultural exports. Fifty billion dollars is the equivalent of today's level of development assistance." [26][27] - Anonymous1 decade ago
No that's a really bad idea. The economies in the world are so interconnected that putting up a tariff would hurt us more than help us. Because then other countries will put up tariffs to retaliate then we will just have a tariff war. As much as other countries rely on our economy, we also rely on theirs. We also export products to other countries as well, and they could easily increase tariff rates.
- 1 decade ago
Protectionist tariffs only end with other nations adding tariffs as well. It's a cyclical solution.
Pencil costs $1 here, $.5 there(cheaper to manufacture), so we add a $.5(+) tariff. So now both are $1. Now they add a tariff to our pencils they import so they are $1.5 and theirs are $.5 there and we end up losing international business, just as they lose business here. No point in trading.
Considered isolationist.
- ?Lv 61 decade ago
The tariff should be on US companies that have moved their manufacturing base abroad. Otherwise it won't matter, jobs will continue to leave, forcing small businesses to close & the economy to get worse.
- Anonymous1 decade ago
We need to cut taxes to our businesses and make them more competitive, so that your American made products are cheaper. You just want to raise prices and create inflation with your method. You act like purchases are mandatory. That only happens in Obama care and then the coward would not even let you cross state lines.
- Anonymous1 decade ago
Because tariffs don't work (and have never worked).
They will only work if the US becomes a shut in and closes all its borders.
- Anonymous1 decade ago
Honey, look up Smoot-Hawley and read about its devastating impact, including creating the Great Depression.