Tariffs

Let's talk tariffs. Having been in the commodities business for 16 years I've had to navigate my fair share of imports and exports, both in the US and around the world. Tariffs are an important factor to consider when negotiating physical deals, some are beneficial and others can have negative impacts.

Unfortunately, like most things in the political sphere, tariffs often split people with no room for common ground. On one side tariffs are viewed as inflationary and costly for consumers. But those on this side often fail to take into consideration how reliant the US has become on other countries for goods - this was made painfully clear during the Covid pandemic when prices spiked across the board in part due to a lack of local manufacturing and production.

On the other side of the argument are those that are extremely pro tariff. And while it is noble to want to increase American manufacturing, the way tariffs are currently implemented it is American companies that are having to pay these increased import costs, not the countries that manufacture the products. These higher costs are often passed onto the American consumer, resulting in higher prices for US consumers.

However, tariffs should not be a partisan or controversial issue. If they are implemented correctly, they can have benefits across the board.

The US should compile a list of ALL products imported into the country. For any product that the US already produces at the rate of domestic consumption, tariffs can be applied to those products. This should not be inflationary as US consumers already have access to ample domestic supply. It also prevents companies that produce in other countries with cheaper access to labor undercutting the price of US companies.

For any product where the US faces a need to import because domestic production does not meet consumption requirements, those products are not tariffed. Instead, tax incentives are offered to US companies in order to manufacture that product domestically. Once domestic production is at the level of domestic consumption, those tax incentives would disappear, and imports of that product can then be tariffed as the US should not need to import it.

This approach would solve the main argument against tariffs that they are inflationary. It would provide huge job creation within the US and give the manufacturing industry a much needed boost, reducing US dependence on other countries without being isolationist. Under this policy, until domestic production met consumption, imports would not be impacted. And it would solve the problem that domestic consumption cannot be ramped up overnight but requires serious investments - which would be recouped by those companies through tax incentives.

Yes there would be a lot of logistical planning needed but the net result would be hugely beneficial. I know the role of commerce secretary has been filled but if someone can get me in front of the transition team I'd be much obliged 😊