Last week, Treasury Secretary Steven Mnuchin announced that the U.S. was putting the trade war with China "on hold.” Yesterday, however, we learned that the Trump administration has decided to move forward with a 25-percent tariff on $50 billion on Chinese imports. The list of imports will be released by June 15 and the new tariffs will take effect shortly thereafter.
First, it’s important to keep in mind that, as a strategic matter, tariffs can be a negotiation tactic. This sends a message to the rest of the world that things are going to change in the broader context of our trade policy.
However, free trade makes us all more prosperous. While it's understandable that President Trump wants to make sure that American workers and companies are treated fairly in trade, tariffs can have a negative impact on American consumers, companies, and industries overall.
Now is not the time to undermine the financial relief that American families are finally experiencing thanks to a strong jobs market, rising wages, and tax cuts. Imposing tariffs on imports will result in unintended consequences that could increase the cost of everyday goods, and ultimately, hurt the economy.
In March, President Donald Trump announced that the U.S. would be imposing new tariffs on steel and aluminum. Independent Women's Forum Policy Director Hadley Heath Manning responded to the announcement on Facebook and discussed why a policy that increases tariffs on imported goods is a step backwards.
You can watch the video and learn more about the downsides of tariffs here: