For as long as trade has existed, there have been duties, fees, levies, tariffs, or taxes that have been applied in all shapes and sizes on goods entering a country. Some folks continue to promote the idea that free trade exists, but it has never truly existed.
Fair and free trade might be an ideal vision worth working toward, but it is common knowledge that nations operate in their own interests and often bend trade agreements.
Up until the 1940s, the United States utilized a range of tariffs to grab a major portion of world trade.
For decades, the United States has helped to subsidize much of the world both economically and through its broad security umbrella.
This was part of an attempt to forge more global allies as well as assist with economic development. However, many nations came to depend on the American gravy train, yet at the same time protected their own markets through tariffs and other barriers to foreign businesses that wanted to compete in their markets. This imbalance has become unsustainable.
President Donald Trump’s threat of slapping tariffs on a whole host of nations was carried out for a number of reasons.
Trump is zeroing in on the worst trade barrier offenders, most of which are in Asia. They enjoy trade surpluses due to high fees charged on imported foreign goods, currency manipulation, government-subsidized industries, and the dumping of cheap products abroad. These actions distort fair and free market forces.