Helpful miscellaneous articles
regarding our retirement plan and planning.
Like you, I review my retirement nestegg and plan from time to
time. Recently, I went though some
continued education for some credentials I maintain and it occurred to me that
we all could use a review about these issues.
So with your help, we will share and post articles and info that may be
helpful and of interest to many of you in this section.
Our economy is now
in a position to react one way or another to the successes found in
tariffs. Everywhere in the more main stream
we hear one side on whether this strategy will work or not. One thing I think most will agree with is the
status quo is not acceptable and better trade deals and better fiscal
responsibility has to come or we would be in a tough spot. Regardless of our
personal views, tariffs are here and we have to be informed to protect our
investments. Here below is an article why
the strategy may turn out beneficial.
The Counter-View: Top 10 Reasons Why Tariffs Are Actually Good for the
USA
February 04, 2025
Overview
In the wake of President Donald Trump's
recent imposition of tariffs on Canada, Mexico, and China, critics have been
quick to highlight potential downsides. However, an alternative perspective
reveals that these tariffs may serve strategic purposes beyond just economic
protectionism. Tariffs can be a powerful tool for economic leverage, national
security, and political strategy. This article explores ten reasons why tariffs
are actually beneficial for the United States, provide insights into the
possible hidden motives behind Canada's and Mexico's responses, and examine
Trump's history of using chaos as a negotiation tool.
Reason #1. Tariffs as a Negotiation Tactic
One of Trump's most defining strategies in
both business and politics is the use of high-stakes negotiations. Tariffs
serve as an opening gambit, forcing other nations to the negotiating table
under duress. As NBC
News reports, Trump's recent tariffs on Mexico and Canada have
led to "a flurry of diplomatic activity," as leaders scramble to
mitigate economic fallout (NBC News). By imposing tariffs, Trump
gains leverage to extract more favorable trade terms.
Reason #2. Causing Chaos to Achieve Order
Trump has often wielded chaos as a tool to
achieve his objectives. His tariffs, while seemingly disruptive, are part of a
broader strategy to realign global trade in favor of the U.S. The New York Times notes
that "businesses worldwide are struggling to adjust to the shifting
economic landscape," proving that Trump's policies are forcing reconsideration
of trade structures (New York Times).
Reason #3. Confusing Our True Enemies
The imposition of tariffs not only pressures
allies but also sends a message to adversaries like China. As Time explains,
"while Canada and Mexico were given a temporary reprieve, China remains
firmly in the crosshairs of Trump's economic policies" (Time). The unpredictability of U.S. trade
actions creates uncertainty in global markets, weakening competitors like
China, who thrive on stable long-term planning.
Reason #4. Fulfilling Trump's Campaign
Promises
From the beginning of his political career,
Trump has emphasized bringing jobs back to the U.S. and reducing reliance on
foreign manufacturing. The Council
on Foreign Relations notes that "tariffs align with
Trump's broader economic vision of protectionism and self-sufficiency" (CFR). By implementing tariffs, Trump
follows through on campaign pledges, reinforcing trust among his base.
Reason #5. Demonstrating U.S. Strength and
Willpower
Tariffs are not merely economic tools; they
are statements of national strength. The BBC highlights that "Trump's
aggressive trade stance showcases a U.S. unwilling to bow to global economic
pressures" (BBC). This move reassures both allies and
domestic supporters that America is prioritizing its own interests over
international appeasement.
Reason #6. Finding New Monetary Sources
Tariffs generate revenue for the U.S.
government, which can be reinvested into infrastructure, defense, and domestic
industries. According to Al
Jazeera, "tariffs on China alone are expected to generate
billions in additional federal revenue" (Al Jazeera).
Reason #7. Reducing Dependency on Foreign
Goods
Long-term economic security relies on
domestic production. EV
Magazine reports that "industries forced to compete
without cheap imports will reinvest in American manufacturing
capabilities" (EV Magazine).
Reason #8. Encouraging Domestic Investment
and Job Growth
With higher tariffs discouraging reliance on
foreign imports, domestic companies have greater incentives to invest in U.S.
manufacturing. Peterson
Institute for International Economics points out that
"historically, tariff measures have led to increased local investment in
key industries" (PIIE).
Reason #9. Preventing Trade Deficits and
Strengthening the Dollar
Reducing reliance on imports can help
balance trade deficits. CBS
News highlights that "tariffs have the potential to
reduce reliance on cheap imports, ultimately improving America's trade deficit
and strengthening the U.S. dollar" (CBS News).
Reason #10. Securing Key Supply Chains for
National Security
By reducing dependence on foreign suppliers,
the U.S. enhances its economic resilience. George W. Bush Presidential Center notes
that "key industries such as defense, technology, and pharmaceuticals
benefit from domestic sourcing rather than relying on geopolitical
adversaries" (Bush Center).
Past Chaos as a Strategy: Trump’s History of
Unconventional Tactics
Throughout his career, Trump has used chaos
to drive policy. Whether threatening to withdraw from NATO or imposing travel
bans, his tactics often lead to unexpected but effective results. CBS News notes
that "Trump’s erratic methods have historically resulted in surprising
diplomatic and economic wins" (CBS News)
Future Areas of Strategic Disruption
Beyond tariffs, Trump could apply similar strategies to:
·
Immigration laws
·
Military alliances
·
Technology sanctions
·
Foreign aid agreements
·
Energy independence policies
What Small Businesses Should Do in the Wake
of These Tariffs
For
small businesses, the key is to adopt a "wait and see" approach
rather than making drastic changes based on short-term tariff effects. Instead
of assuming a full-scale trade war, businesses should consider the following:
·
Diversifying Supply Chains: Finding
alternative domestic suppliers to reduce reliance on affected imports.
·
Strategic Pricing Adjustments: Preparing
for potential price fluctuations by adjusting margins accordingly.
·
Government Incentives: Taking
advantage of any federal assistance programs aimed at boosting local
production.
Patriotic and American-based economic
sources suggest that while tariffs can be disruptive, they are unlikely to lead
to a full-scale economic catastrophe. Instead, they may simply serve as a
mechanism for renegotiation and domestic reinvestment.
Conclusion
While tariffs may seem disruptive on the
surface, a deeper analysis reveals that they serve multiple strategic purposes.
From reinforcing Trump's campaign promises to confusing adversaries and
negotiating better trade deals, these tariffs exemplify a calculated approach
to global economic dominance.
Bibliography
·
CBS News. "What Are Tariffs? Here's
Everything You Need to Know About the Import Duties." February 1, 2025.
·
Peterson Institute for International
Economics. "Can Tariffs Be a Good Thing?" November 15, 2024.
·
University of Virginia News. "Q&A:
What Are Tariffs and How Will They Affect Us?" February 3, 2025.
·
EV Magazine. "The Trump Tariffs: Pros,
Cons & Global Impact." November 28, 2024.
·
BBC News. "Trump Imposes Tariffs on
Mexico, Canada, and China." February 1, 2025.
·
NBC News. "How Tariffs Work and What
They Mean for You." February 2, 2025.
·
George W. Bush Presidential Center.
"Tariffs Are Great – If You Like Raising Prices, Undermining Jobs, and
Inhibiting Innovation." Fall 2018.
·
The New York Times. "Trump Imposes
Steep Tariffs on Mexico, Canada, and China." February 2, 2025.
·
Time. "What Are Tariffs and Why Is
Trump in Favor of Them?" February 2, 2025.
·
Council on Foreign Relations. "What Are
Tariffs?"
·
Al Jazeera. "Trump Imposes Tariffs on
Mexico, Canada and China." February 2, 2025.
·
National Post. "Donald Trump Imposes
Tariffs on Canada, Mexico, and China, Sparking Trade Tensions." February
2, 2025.
·
NBC News. "Live Updates: Trump Imposes
Tariffs on Canada, Mexico, and China." February 2, 2025.
·
BBC News. "Trump Imposes Tariffs on
Mexico, Canada, and China." February 2, 2025.
(As with any of these informative articles,
anyone who needs someone to talk to about
this
very subject contact me and I can direct you to a knowledgeable advisor).
No comments:
Post a Comment