A shopper analyzing the prices of produce (The Boston Globe).
Tariffs have gained immense popularity and acknowledgement within the recent year.
The debate has had significant controversy. Detrimental effects on American civilians will be life-altering. What will tariffs do? What exports will be affected? Several classes will be affected; however, one particular class bracket will be impacted substantially– the low income to middle-low income class.
Monstrous tariffs have been the spotlight recently with the Trump Administration declaring reciprocal tariffs and their “respective” percentages.
The administration strongly believes that these tariffs will be paid by other countries; however, this is far from the case due to retaliation. History has unfolded the economic issues that will arise from implementing tariffs, especially with their comeback– retaliatory tariffs. Nations that are affected from paying tariffs to export will implement their own tariffs of exports to the U.S.A, therefore ensuring that the U.S will have to pay for their productions.
However, this is not contributed by monopolies, companies, federal agencies, or investors; instead, the majority of the contributions will rely on ordinary residents of the U.S.
Additionally, the thought of companies mitigating their international efforts to base their industry in the U.S will be ignored; instead, companies will circumvent and raise their prices for consumers. Civilians will have to pay extra for all sorts of goods if they were manufactured internationally by the corresponding country affected by tariffs.
Intentionally? How did the Administration come to this decision?
Trump’s perspective on tariffs has been noted as astounding and great due to the Gilded Age. To reference, the Gilded Age ended with the substantial and devastating Great Depression. His idea was to replicate McKinley's ideologies (1897-1901 president); however, many historians and U.S history have depicted the several economic issues that prevailed during his time.
What Will Tariffs Do to the Middle or Low Income Classes?
Prices will be expensive due to companies raising prices for consumers in the U.S to the point it could be unlivable. NBC has noted that the “price of rice [is] expected to increase 10% and prices of fish, nuts and fresh produce set to rise 4%.” Goods such as produce are vital for human anatomy. Additionally, expensive prices hurt the middle and low-income classes more, especially if they have family members. Individuals or families might not be able to afford the necessities to live a healthy lifestyle as well. Most imports, such as avocados or tomatoes, do not have substantial cultivation in the U.S, and we are not as agriculturally based as years ago. Mainly, fruits like avocados and tomatoes are actually grown in China or Mexico.
Additionally, the U.S does not manufacture as much as the 20th century. Instead, companies went overseas and based their headquarters in the U.S and conformed to the U.S standards. International companies can break certain guidelines, and have access to several materials such as precious metals or woods, which you can not obtain in the U.S. Even with that, Trump has implemented reciprocal tariffs.
Reciprocal Tariffs for Everyone
Trump shining tariffs on every single nation with reciprocal tariffs has accumulated egregious reception internationally and nationally. Presenting nations with a certain percentage of their exports would be absurd. We rely on exports, and it is not realistically reasonable to ruin international friendships and increase prices.
Even though he has paused the tariffs for 75 days, they would still be going into play after that duration.
Although the pause does not apply to China, and the 104% tariff casted by the U.S. Tariffs in the near future would imperil several lives. The future trajectory might change, for now, we must continue to advocate.
Written by Om Patel