For Immediate Release: March 22, 2024
Contact: R-CALF USA CEO Bill Bullard
Phone: 406-252-2516; r-calfusa@r-calfusa.com
Please find below R-CALF USA’s weekly opinion/commentary that discusses the flurry of new bills introduced in Congress to establish tariffs to help rebuild domestic supply chains. It is in three formats: written, audio and video. Anyone is welcome to use it for broadcasting or reporting.
Correct Answer: Tariffs
Commentary by Bill Bullard, CEO, R-CALF USA
How do we begin fixing America’s economy, an economy that has been offshoring manufacturing and production for decades, resulting in a trade deficit in goods of over $1 trillion in 2023; and that has shifted from a producer of goods to a service provider; and that has lost 5 million manufacturing jobs during just the past two decades; and that has seen the purchasing power of middle Americans shrink but continues nevertheless to overtax them; and that within just the past five years has become a net importer, of all things, food?
To answer the question of how we begin fixing America’s economy, let’s go back in history to a time when America’s economy was a wealth-producing engine and America was an industrial and agricultural superpower.
We have to go back in history when America realized that imported goods and food provided both a risk to and an opportunity for America’s economy. First the risk: imported goods and food produced in countries with lower labor costs; less stringent environmental and production standards; and even government subsidies presented a risk of displacing domestic production, resulting in the deindustrialization of America and threatening her national security, including her food security. And now the opportunity: Those same imported goods and food from those same foreign countries were an important potential source of revenue generation for America and her citizens.
It was only 235 years ago, in 1789, that America understood this as evidenced by Congress’s passage of the Tariff Act of 1789. It was passed so America could use import duties, or tariffs, to offset the inequity in the costs of production and manufacturing between America and the countries from which she imports. But it was also passed to generate revenues for the U.S. Treasury as was then described by Congress as the means of supporting the government and discharging the debts of the United States.
Now let’s zero in on how tariffs can be used to additionally offset domestic taxes. According to the Coalition for a Prosperous America, the additional tariffs instituted on China’s imports in 2018 generated approximately $48 billion per year, which is roughly the same amount as the income tax remitted by the lower 50 percent of American taxpayers. It’s roughly the same amount as all the federal gas taxes paid by motorists in America each year.
Now these tariffs, first implemented two centuries ago, enabled America to prosper and become the greatest and strongest nation in the world.
And for nearly 150 years, Congress regularly enacted new tariff acts to ensure that tariff rates were sufficient to sustain domestic production and manufacturing, preserve our national security, and support the government without overtaxing citizens.
But history is replete with examples of how Congress just can’t leave well enough alone, and after the Tariff Act of 1930, Congress abandoned its constitutional authority on tariffs, delegating that authority to the president, which can be viewed as the outset of globalism and free trade that has since weakened our national economy, particularly over the past few decades.
Fortunately, after decades of pursuing false globalization and free trade prophets, Congress is beginning to return to reality and a new wave of tariff bills has now been reintroduced in Congress.
Here are examples of how bipartisan members of Congress are, right now, beginning to reinvigorate a tariff policy that can strengthen our domestic supply chains, reduce both our nation’s trade and budget deficits, and potentially reduce the tax burdens on U.S. citizens.
There’s the Increasing American Ferrosilicon Production Act introduced by Sens. Sherrod Brown (D-OH) and Tommy Tuberville (R-AL) to protect American production of ferrosilicon in Ohio and Alabama.
There’s the India Shrimp Tariff Act introduced by Sen. Bill Cassidy (R-LA) to support and help rebuild our domestic shrimp industry that has been decimated by cheap imports, imports that have now captured 90% of our domestic shrimp market.
There’s the Sewage Garlic Imports Act by Sen. Rick Scott (R-FL) that targets China and provides relief from garlic imports that have injured California and other domestic garlic growers.
Then there’s the Protecting American Autoworkers from China Act introduced by Sen. Josh Hawley (R-MO) which raises the tariff by 100 percent on all vehicles imported from China.
And there’s the Strengthening Tariffs on Chinese Autos Act introduced by Sen. Marco Rubio (R-FL) that puts a specific tariff of $20,000 on each Chinese vehicle.
And the Stop Mexico’s Steel Surge Act was introduced by Sens. Tom Cotton (R-AR) and Sherrod Brown (D-OH), along with numerous bipartisan and bicameral cosponsors to impose tariffs to accomplish the very title of the Act.
And so it is that “Tariffs” are the correct answer to the question: How do we begin fixing America’s economy?
I hope you will call your members of Congress to urge them to support this reinvigoration of our nation’s abandoned tariff policies, and I hope you will encourage them to support tariffs on imported lamb before America allows imports to completely destroy our U.S. sheep industry.
###
R-CALF USA’s weekly opinion/commentary educates and informs both consumers and producers about timely issues important to the U.S. cattle and sheep industries and rural America.
Ranchers Cattlemen Action Legal Fund United Stockgrowers of America (R-CALF USA) is the largest producer-only trade association in the United States. It is a national, nonprofit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle and sheep industries. For more information, visit www.r-calfusa.com or call (406) 252-2516.
