Tariffs - Good or bad for a nation?

[jyy]

Trump is wanting to impose tariffs on goods from many major countries. However, opponents claim while he will help some homegrown industries, he will hurt a lot more - as well as starting a trade war. Anyway, do you see any examples where this method of economics has been successful?

[kaisantos]

I think it's best for a state to impose tariffs to products that is not made from that state. It will not just help the local industries of the state, but also, it will help promote the local products for the local people to buy. By adding more tax in imported product, local products can now compete fairly against the cheaper imported products produce by cheaper labor. Tariffs can also help prevent big companies to outsource jobs to countries that offers cheaper labors and it will also increase the state job opportunities.

[jyy]

Does anyone think the increased jobs from tariffs are more than lost jobs done via "unfair trade" cooperation? That seems to be what many US politicians are saying. Nonetheless, cynics would say they're bought out by business (campaign finance).

[blakfinn]

Tariffs have good and bad sides to it,it may seem to protect and help local industries but it tends to kill the incentive to innovate and forces consumers to pay higher for imported alternatives.
In 1930,US raised tariff on 20,000 imported products and it devastated the US economy as other countries reciprocated,imports dropped by 66% while exports dropped by 61%.
Protectionism most times ends up hurting the economy than improving it.

[jyy]

[quote quote=1401]Tariffs have good and bad sides to it,it may seem to protect and help local industries but it tends to kill the incentive to innovate and forces consumers to pay higher for imported alternatives.
In 1930,US raised tariff on 20,000 imported products and it devastated the US economy as other countries reciprocated,imports dropped by 66% while exports dropped by 61%.
Protectionism most times ends up hurting the economy than improving it.[/quote]

Well, to be honest, lol, it was already the Great Depression, but I suppose what you said made it way worse. Anyway, a counterargument to what you said, claims that companies move overseas, use foreign labor and then pocket the savings. In other words, the folks back home won't get any real savings, only enough to destroy the competition that didn't leave the nation.

[Martin]

For developed nations, they seem to hinder more than they help as most nations just respond with a similar tariff to cancel the other out. For developing nations it can massively help allow an industry to develop before opening the market up to foreign competition. Like all things in economics, it depends.