March 8, 2016
By Jim Geraghty
Donald Trump has pitched himself to voters as a proud protectionist, intent on punishing the Chinese companies that he says are hurting American workers. In his January meeting with the editorial board of the New York Times, he said he would impose a 45 percent tariff on all products imported from China.
Luckily, we don’t have to guess how such a tariff would impact the economy, because the Obama administration attempted a version of Trump’s idea seven years ago. It did not go well.
“It’s basically a real-world case study on what would happen if we imposed 35 percent tariffs on Chinese imports,” says Scott Lincicome, an international trade attorney and adjunct fellow at the Cato Institute. “In this case, we saw huge costs for consumers, gains by other foreign competitors, and almost no gains for American workers, even under the most generous of assumptions.”
By 2009, the United States was importing tires from China at a rate of about 50 million per year. The United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial, and Service Workers International Union complained to the Obama administration that there was a “large, rapid, and continuing” increase in the number of Chinese-made tires entering American markets. In September of that year, Obama approved relief for domestic producers by increasing tariffs on most new tire imports for three years.
Read the full article at National Review Online: The Problem with Trump’s Protectionist Tariffs