“He is looking for the long run with low or no tariffs distorting international trade.”
Yep, but tariffs are the tool he has to bring that about.
Subsidies and tariffs go together. A government subsidizes a product and protects it’s investment with tariffs. Every government does that and a skewed, ineffective economy results for all.
Tariffs are good only when they’re needed for sound economic reasons.
As I have said tariffs are good political instruments but damage the economy overall.
Trump is using the issue effectively from a political viewpoint.
Subsidies with tariffs are highly protectionist particularly if the subsidies are to be paid from the tariffs.
I remember long ago when tarrifs were used to raise revenue for the federal government and there were no income taxes....now the piggy gets to double dip both...how times have changed
Our original tariff had several aspects: it was a protectionist tariff to establish industries critical to the new nation; it was a revenue tariff to fund the federal government.
At that time it was impossible to have any other means of raising revenue, other than land sales so the tariff was the tool turned to.
It has always been manipulated by various economic forces and subject to immense corruption as the political history of the 1800s shows.