Are tariffs a viable option for protection in todays global economy

[Dill]

(01-26-2018, 04:40 PM)CKwi88 Wrote: I doubt you'd even have to go that far back to see a case of tariffs backfiring. 

Obama tried to get tough with China over car tires and decided to slap Chinese tire imports with a 35% tariff. It was able to save about 1200 tire manufacturing jobs, but tire prices (Chinese and American made) increased, we simply imported more tires from countries other than China, and China naturally retaliated by slapping tariffs on American poultry, hurting American production. 

But of course, that was Obama. Trump is the master dealmaker, or something like that.

Tariffs make for good political grandstanding. Trump gets to say it's all about "Murica First" and the people that eat it up will talk about combating slave wages. It'll save a few jobs, but consumers will see higher prices, and we'll have to see if there are any responses to the tariffs. The tariffs he imposed are hardly the end of the world. They're just nothing to get excited about either. A nothingburger. 

My reference to Smoot Hawley is only point or baseline for discussing the issue of tariffs, something people need to consider whenever discussing tariffs, not a definitive absolute closure on tariff considerations.  It's passage appears to have gone against the best economic advice available at the time, in part because it presented a simple (or simplistic) solution of the sort which tend to be politically effective (e.g., the "political grandstanding" you reference above).

I tend to agree with Treee, that concerted tariff policies with US allies might have a positive effect, though that would require diplomacy. And I find your caution sensible as well.  The US acting alone in tariff matters or otherwise "going rogue" would likely increase rather than decrease stability in world wide markets, not to mention expose the US to retaliation.