Tariffs on imports are taxes. We,
the American people, have to pay them. When prices go up on air-conditioners
and washing machines because of tariffs, Americans have to pay more for them. When
tariffs are imposed on steel and aluminum imports, products made with them cost
more. And we have to pay those higher prices as well. Now, if President Trump
goes through with his promises to place tariffs on all Chinese imports, we will
have to pay more for the higher prices on them.
Not everybody needs a new
air-conditioner or washing machine, or a new car made with imported steel
parts. But how about shoes? Some 97 percent of them sold in our stores are
imports, two-thirds rom China. Who doesn’t need shoes? The bare fact is that
all America is starting to see prices rise as a direct result of tariffs. And
they will continue to rise if the president continues his unwise protectionist
policies.
Maybe it’s all a poker game with him.
He went all in by calling for a 25% tariff on European cars. Maybe it was a bluff,
but it succeeded: Europe blinked, because Germany depends heavily on selling
BMWs in America. Maybe tariffs between Europe and America will all be
eliminated as they have been between Europe and Japan. If they are, the president
will have won that game.
China will not be so easily bluffed.
The Europeans are allies, but the Chinese are not, and they hold a lot of high
cards. One is that President Xi does not have to fear being ousted from power.
Another is that China owns more than a trillion dollars of our debt. Yet
another is that we need China to cooperate on the denuclearization of North
Korea. For China, this is not a game: it’s a war over its control of the South
China Sea and over its growing influence in South America, Africa, and the Asian
sub-continent. It’s a war about who is to be the world’s dominant power.
President Trump holds a lot of high
cards, too. But China will not be bluffed. To paraphrase a familiar song, “There’s
a time to hold ‘em, and a time to fold ‘em.” The stakes are high. And the
biggest losers may be us.