Quote:
Originally Posted by jfrog
Please feel free to post any opinions on Tariffs, any thoughts or questions. I have a question to kick the thread off.
#1 The Economists say that Tariff's are bad for the country imposing the Tariff. It's "committing economic suicide" etc.
#2 Other countries always impose retaliatory tariffs when we tariff something of theirs.
If it actually is true that tariffs are bad for the country imposing them why does every country we impose a tariff on retaliate by placing a Tariff on our goods instead of just laughing at us for harming ourselves?
Are the economists wrong? Are all countries dumb? Why is it that no country takes the economists advice when it comes to Tariffs?
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I think there are multiple factors in play. First, imposing retaliatory tariffs is only detrimental to the economies in question. Second, if a nation has a trade deficit with another nation, a tariff can bring some level playing ground in effort to encourage more trade and cooperation to relieve the tariff.
But that's only what I've read and I'm not even sure if that's true. I'm by far no expert on it.