Originally posted to The Kansas Policy Institute.
The return of tariffs under the Trump administration spells trouble for Kansas, especially its agricultural sector. Past federal tariffs and retaliatory tariffs by other countries in 2018 and 2019 led to nearly $1 billion in lost trade annually for Kansas farmers, particularly those exporting soybeans, sorghum, and pork. In response, the federal government issued billions of taxpayer dollars in subsidies, but bailouts are no substitute for free markets. This time around, tariffs are in place for many goods imported from China at an additional 10% above what’s already imposed and for Canada and Mexico at a 25% rate. These countries have already announced retaliatory tariffs that contribute to the heated trade war at the time of this writing. The High Cost of Tariffs
Kansas Leaders Must Act Instead of waiting for Washington, Kansas policymakers should:
Conclusion Tariffs weaken Kansas’s, and everyone else’s, economy, leading to higher costs, job losses, and uncertainty. Bailouts don’t fix the problem—free trade does. State leaders must develop pro-growth policies to protect Kansas from another costly trade war.
0 Comments
Your comment will be posted after it is approved.
Leave a Reply. |
Vance Ginn, Ph.D.
|