Why Tariffs Hurt Americans

Professor Mark Perry, University of Michigan, provides us with a great explanation on why our tariffs on China are a bad idea.

Here is the link to Carpe Diem

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10 Responses to “Why Tariffs Hurt Americans”


  1. 1 Halona Hong Truong September 12, 2009 at 11:03 AM

    President Obama sent the absolute, right message regarding the Section421 filing involving Chinese tire shipments. The case brought by the United Steelworkers Union was seeking relief for our devastated domestic tire industry. The do-nothing approach favored in the past was cast aside, sending a powerful message to our trading partners abroad. Thank you Mr. President for delivering your decisive, prompt reply. Special thanks to the visionary leadership of the USW, to Rep. Pete Visclosky, Chairman of the Congressional Steel Caucus, and co-chair Tim Murphy, to all caucus members for all their hard work on behalf of American working families.

  2. 2 Michelle Benton September 12, 2009 at 12:46 PM

    I had no idea about tariffs and how they effect the economy and us as individual consumers. The article and comment that followed was very informative to me. The graph was a little confusing but it was best summed up in the “Bottom Line” statement in the article: “America will be worse off with the tire tariff, not better, and we will suffer from higher tire prices, a net loss of jobs, lower economic growth, and a reduction in our country’s standard of living.” It goes back to trying to buy American and support the better efficiency of American companies abilities to produce a product that the rest of the world wants to buy. I don’t see what is so hard about producing products (cars especially) that other countries would buy from us. And if they don’t want them, we as Americans should want to improve our goods and services so that at least we want them.

  3. 3 Ciara Pedroncelli September 12, 2009 at 7:28 PM

    This article about the tire tariffs was very eye opening. Although I knew that tariffs on any product always had good and bad consequences the graph and the explanations really can help everyone to better understand tariffs. The article shows that although tariffs may seem like a good idea in the beginning because hopefully Americans will buy more of their own products tariffs, in the end, actually hurt consumers. I hope that this article makes more Americans aware of what the government is doing and how it affects everyone. Tariffs make imports from other countries less appealing but it then affects the consumer which then affects the entire economy and eventually the entire world.

  4. 4 Kaitlin E September 15, 2009 at 9:27 AM

    As was discussed in class, it should be interesting to see how far the two countries will go, and to see whether or not this will turn out to be a tariff war. Professor Balassi was telling us that China has already retaliated a little by imposing tariffs on American auto parts and chicken. Hopefully, both sides will not take these tariffs any further or many Americans will continue to suffer from their effects.

  5. 5 Ruby S September 15, 2009 at 7:29 PM

    The part of this information that worried me the most was the loss of more jobs due to the tariffs. There are good and bad aspects, but when the negative outwiegh the positive, you would think that the tariffs would be changed. We don’t need to have more loss in our country, especially when we can control it.

  6. 6 Remy Smith-Lewis September 16, 2009 at 9:29 AM

    I agree with what President Obama did, but we dont need to get into tariff wars, i just hope no more hard working people lose there jobs.

  7. 7 Jordan Premo September 21, 2009 at 10:29 PM

    Putting a tariff on the Chinese tires really was not a smart choice. As consumers we had a choice to purchase lower priced imported tires, now we won’tn Also keeping a friendly relationship with China should have been of more importance. They are huge allies in helping fight nuclear stand-offs with Iran and North Korea. I also have read in a couple articles that the Steel Workers Union is key in the support of Obama’s oh so well planned out Healthcare reform, so it kind of makes me wonder what the real intentions were behind the decision to put a tariff on chinese tires. HMMM?

  8. 8 Evan Schlinkert November 29, 2009 at 12:18 PM

    As we discussed in class putting these tariffs on China doesn’t really help America because they will just respond with tariffs of their own. To me it seems that Obama was trying to help America and bring the economy back to the glory that it once was, but in reality it only hurt us because of the tariffs that were put on us right back.

  9. 9 Vince Kaehler December 6, 2009 at 3:23 PM

    I am not sure how I really feel about tariffs. Because we cannot raise the tariffs too high, the only way to compete is to convince the US citizens to buy our own product. This is impossible because Chinese products can be produced so much cheaper. the minimum wage in china is a lot lower then the US’s. The US cannot compete with other countries if it has so many restrictions and regulations. Either the regulations and restrictions need to be lessened or the tariffs need to be increased. Either way people are going to be hurt somewhere.

  10. 10 Nathan Couch December 17, 2009 at 2:04 PM

    I discussed this in my Intro to Business class and I thought that this tariff would be terrible. Liek the article says, it would do nothing but force the prices of tires upward and the chinese made tires are great for the low-income consumers.

    I think tariffs can be good in some cases but when they end up affecting the lower-class consumers they aren’t ever a good thing. As it is the prices we pay for things can seem a bit steep, especially with increasing stagflation.


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