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I agree with the author of the Jan. 27 BDN column when they write: “While the importer may choose not to pass along the full cost to the final consumer, the tariff increases the cost of produce and will necessarily impact the firm’s bottom line.”
This is an important point to remember when thinking about tariffs. In imposing tariffs on other countries it is hard to believe that exporters would not raise costs for importers. Those who export goods to the United States most likely will want to recoup at least some if not all of the costs associated with them.
It would then reason that the importers who have the same mindset would pass these higher costs for goods off to consumers. Essentially the higher cost for goods would trickle down to the consumer at some point. This is why it is hard to see the benefits that might appear to be associated with tariffs.
We also need to remember that many economists consider the Smoot-Hawley Tariff Act of the 1930s to have worsened the situation that led to the Great Depression. We should be cognizant of our history to prevent potentially disastrous economic situations.
Whether you agree with the tariffs or not, as consumers we are all most likely on the same page when it relates to higher costs. We enjoy when prices are down since this typically means our dollars can go further. Those in positions associated with making trade-related deals should attempt to find the best avenues to keep costs low.
Ben Bucklin
Searsport
