The Inadvisability of MAGA-Initiated International Trade Warfare Tariffs
Ultimately, Tariffs on Products of Exporter-Suppliers Sold to Importer-Retailers Are a Pass-on Sales Tax on and Raise the Prices on Those Products Sold by Importer-Retailers and Purchased by Domestic Consumers
Some of the top and obvious marketplace ramifications of the economic mechanics of the imposition of tariffs on imports from China and other [major] export-import competitor nations:
PRC China and the other major nation-state export-import competitors targeted, and their business products punished, with US tariffs on their exports to, imports by US re-sellers into, the US will balance and cancel out the effect of the US tariffs with corresponding, or correspondingly higher, rates-of-charge counter tariffs of their own on US exports to their nations, compared to zero or lower tariff rates-of-charge on imports from respectively zero-tariff and lower-tariff imposing nations. Prices of imports, including components, parts and raw materials in addition to semifinished and finished products for all affected lines of products, will increase, and probably comparatively rapidly or abruptly sharply in spikes for and between the tariff dueling nations. Particularly the smaller producer, and/or lesser international and optionally domestic, market-share and import-beneficiary retailer and consumer, export nation would most lose, though both might lose lopsidedly overall, international consumer market share, reduced domestic consumer purchases, along with net-effect purchasing power with regard to its household and business enterprise incomes, and reduced retailer sales and profitability and consequential, in the aggregate, reduced import-export business sector earnings as well as earnings, or returns, to their investors, as in the import-export sector of the US economy. This economic scenario in the USA would result in widespread business failures and staid acutely diminished sales, revenue and profit declines in the import-export sector of the economy, including for major street, mall and online retailers, and in the respective full unemployment for some and substantial reductions in employment for others of their workforces. Housing, automobile, grocer, banking, lending and credit, church tithing, charitable donations and political contributions, among other sectors of the US economy, would be economically hurt by income losses by the import-tariffs' related and driven downturn (in financially weakened going concerns, insolvencies and mass unemployment and reduced employment of business significantly tied to and dependent on imports, especially normally price-cheap imports) in the US economy.
However, when imports constitute the dumping of products at or below the cost of their production, whose effect is or credibly potentially is to harm systemically the viability of an industry or producer-market segment of the receiver nation, then reasonably such imports should be banned if they are not essential to or required for the production needs of domestic producers and the supply of the same kinds of products by domestic suppliers is insufficient. If they are so needed, then tariffs should be levied on them to make their retail prices match the average, above-average or top price of the concerned products found across major or all world markets. Otherwise, when imports, by exporters, with bona-fide lower prices episodically or in an overall continuum flood the domestic market, import quotas can be set on them and punitive tariffs can be levied on them, per type of product and supplier, with offender suppliers subject to being suspended for a term from exporting directly or indirectly through proxies, on a case-by-case basis rather than on and against the export products in large measure or wholly of a foreign nation or its producers so as to protect the solvency, viability and marketplace competitiveness of domestic producers while averting inter-nation mutually economically damaging trade wars. By law, anti-monopoly or -quasi-monopoly and anti-collusion regulated domestic and international competition between and among similar businesses constrains runaway price rises and inflation to the benefit of consumers and, ideally, bolsters a maximum of market-share participants and stakeholders within and across the different industries and types of business as well as supports the extensive spread of wealth, and its non-concentration in a relatively few, among the citizenry.
We must be proactively mindful of both Murphy's law and the Peter principle, or woe betide us like with the Covid-19 pandemic and its havoc on the US economy and economies of the other major nations of the world of humanity.
Tariffs do not take place in a one-way action environment and relationship with other nations and the nations of the world, as in one of negative output and impact on others by oneself without a return, or response, and impact action, or counteraction, on oneself from and by negatively affected others by oneself, the initiator-instigator of the negativity or negative exchange and transaction relationship. We must remember that indeed tariffs ultimately are a sales tax, passed by the exporter-suppliers onto the retailers and consumers of imports, which hikes the costs and prices of imported, if not all, by side effect, products and services for sale.