I agreeto Idea New Tariff
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Increasing Trade, Exports, and Overall Competitiveness »

New Tariff

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Yes

We should institute a tariff for each country that exports goods to our country.

The tariff would be a percentage of the value of goods imported and would be calculated on the percentage of the difference between what the avg salary is for a particular industry and our minimum wage.

So if China thinks $1/hour wage is good in the shoe industry, then we would add a tariff equal to 86% of the value of the goods coming into the country. ($7.25-$1)/$7.25=86%. (assuming $7.25 US min wage)

So the pair of shoes which may cost them $10 to make would have a tariff of $8.60 added to them. If the US company could make shoes for less than $18.60, it might keep jobs here.

Of course China would add a tariff to our goods, but what do they buy from us other than debt?

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Submitted by Community Member 2 years ago

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Comments (4)

  1. Community Member

    That would be great, then China can buy all its passenger jets from Airbus and microchip fabrication equipment from Germany. Why not get into a trade war with your 4th largest export market after Canada, Mexico and Japan,valued at about 70 billion dollars a year, oh forgot they only buy our debt sorry, you muust know a lot more about this than I do.

    2 years ago
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  2. Community Member

    So what's your solution to narrowing the trade deficit with China? I know this is not a realistic solution but wanted to see the reaction I would get.

    We are losing/have lost the the economic edge to a country who has no regard for environmental policies, labor laws, child welfare laws...etc.

    Kinda hard to compete fairly with a country who doesn't care for its workers.

    2 years ago
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  3. Community Member

    One more thing... If things keep going the way they are, China will have its own airline industry and we will be buying planes from them one day.

    So to compete, your kids will probably need to get used to working for minimum wages as all the good jobs will be sent oversees.

    Free trade..yes, but also Fair trade.

    2 years ago
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  4. Community Member

    You are right, China does not play by the rules, the biggest impediment to increasing exports to China or decreasing thiers to us is a fair value to their currency which they currently control and keep artificially low. Tariffs are not the answer.

    2 years ago
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