Right now, the great boogeyman making the rounds is the “T” word…tariffs. Based on 95% of news stories, blogs, talking heads and “expert economists” the American economy is on life support and the plug is very loose, due to tariffs.

Believe it or not, not everything in this country is under the threat of tariffs. If it is manufactured in this country, it is NOT subject to a tariff. That is not to say that there are items that cannot be manufactured here that have to be imported, and will be subject to those tariffs. But if people stop and do a little research, a little comparison shopping, they will find the damage can be minimized, not eliminated (yet) but minimized.

I read an online blog posted by a man that showed, in a simple example, how tariffs can work FOR us. He uses a simple padlock, one manufactured in China, and an identical one made in the USA. The lock made in the USA was $2.00 more than its import clone, $5.00 vs. $3.00 for the China lock. By imposing a tariff on the Chinese import, driving the price up to $6.50, the U.S. made lock suddenly became more desirable. This is a very simplistic example, but shows clearly how the system works.

There has been big talk about bringing much needed manufacturing (and the jobs that go with it) back to America. Is this going to be the manna from heaven everybody thinks it could be? No, because the thing they don’t talk about is how overseas manufacturing does things we are not allowed to do. Child labor, systems run by the government, not private citizens, questionable quality, pay, and other things are strong factors. Unions don’t help the situation either, but that’s another subject.

There are so many factors that make up the tariff wars, Quality of products being one. Another is the availability of some products that can only be grown in selected areas, like coffee for example. There is no perfect answer, but what we do need to do is remember who was and can still be the single greatest manufacturing country in the world.

Carpe Diem

Alan Marshall