President Trump, among others, has made political hay of America’s trade deficit with China. To correct this alleged problem, the President has imposed a number of tariffs on goods imported from China. But trade does not occur between nations; trade occurs between individuals
If a Texan buys groceries at Kroger, the exchange is not between Texas and Ohio (where Kroger is based). The trade is between that individual and the owners of Kroger. The same is true of trade involving companies based in foreign countries. The exchange occurs between the individual making the purchase and the individual making the sale.
Consider further that no rational individual makes an issue of a trade deficit between American states. If Ohioans purchase more from Texans than Texans purchase from Ohioans, we don’t hear Ohio lawmakers demanding federal tariffs on goods imported from Texas.
Tariffs harm individuals. They arbitrarily raise the prices of imported goods, thereby forcing consumers to pay more for the same goods or do without. Of course, the defenders of tariffs argue that “level the playing field” because many foreign countries impose tariffs on American goods. But the fact that foreign governments impose harm on their citizens is not a valid reason for our government to similarly inflict harm Americans.
Stripped of all the rhetoric, tariffs are nothing more than cronyism. Tariffs grant political supporters unearned benefits, and others are forced to pay the bill. Some individuals benefit at the expense of other individuals.
If President Trump truly wants to make America great again, he would promote free trade. He would tear down the barriers that restrict trade, whether it occurs between the residents of different states or the citizens of different countries. He would protect the freedom of individuals to engage in voluntary trade without government interference.