The consequence will be retaliatory tariffs on US exports. This would hurt US companies. The US, in many cases, is an unfit place to do business as a result of high regulations, Obamacare, etc. These companies are fleeing a bad situation. If you want more jobs in America then reduce the burdens on US business rather than tax imports.
I disagree.
America has turned away from businesses.
The GOP needs to turn around, and bring back businesses to America.
Now. It won’t happen unless we make it more advantageous to make things in America.
I say that time has arrived.
Stop shipping manufacturing offshore.
Bring back American jobs.
Historically, many armed conflicts have been a result of governments interfering with or manipulating trade. Once initiated, all sides will scramble to gain advantage.
If I were to be made King and Dictator for a day, here’s what I would do the following to fix the situation:
1) APPROVE KEYSTONE PIPELINE
2) LOWER CORPORATE TAXES TO CANADA’s LEVEL (15%).
3) REPEAL OBAMACARE.
4) KILL THE ESTATE TAX ( AKA DEATH TAX )
5) DO NOT TAX ANY REPATRIATION OF CORPORATE PROFITS THAT COME BACK TO THE USA.
6) MAKE EVERY STATES RIGHT TO WORK STATES.
7) MAKE EVERY MUNICIPAL, STATE AND FEDERAL GOVERNMENT EMPLOYEES CONTRIBUTE TO THEIR PENSION AND HEALTHCARE THE SAME WAY MOST PRIVATE COMPANIES DO.
8) IMPLEMENT THE PENNY PLAN IMMEDIATELY TO SOLVE OUR BUDGET AND DEBT PROBLEMS:
http://www.conniemack.com/issues/penny-plan/
9) OPEN UP MORE OF OUR FEDERAL LANDS TO DRILLING.
10) IMPLEMENT THE CHILEAN MODEL FOR SOCIAL SECURITY.
Well, that’s a lot for one day.... but you want the economy to boom and create jobs ( and prevent them from going overseas)? Let’s start with these...
“The consequence will be retaliatory tariffs on US exports. This would hurt US companies.”
The US became an industrial power in the second half of the 19th Century. During that era, the US employed high tariffs to fund the federal government and protect development of the manufacturing sector.
Today the effective US tariff rate on imports of manufactured goods is 2.9% (http://data.worldbank.org/indicator/TM.TAX.MANF.SM.AR.ZS). For China it is 7.9%. China also applies a VAT (value added tax) of 17% to most imported goods. In addition specified products (automobiles, luxury items, motorcycles, non-renewable petroleum products) are subject to a special consumption tax.
Add to the above Chinese government subsidies of exporting factories (essentially 0% interest rates to fund capital investment), rebates paid to factories of as much as 15% of the value of exports, and non tariff barriers.
Consider also the outright theft of intellectual property by Chinese companies and the ongoing cyberwarfare by the Chinese government against US companies and the US government. Not to mention the $1.00 per day wages and 10 hour working days.
The 25 year experiment with free trade has a been a huge win for China and a disaster for the American economy and the American middle class. Given the experience of the past 25 years I have no fear of retaliatory tariffs. Unless we return to the tariff policies of the past, we will continue to see our economy decline and the evaporation of the middle class.