“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.
America needs jobs.
Jobs.
Both parties, are selling out America. Do not wait for Democrats, GOP, or it will be too late and America will be lost.
We need American jobs. A lot of American jobs.
Bring. Them. Back.
GOP wake the heck up.
Fight for America, for a change!