These comments from Reagan from April 1987 ring true:
Last year, Nippon Steel tried to enter the US by purchasing US Steel and investing massively to make it more competitive. What happened? US steel producers banded together and lobbied the government to block the merger and keep out a real competitor. Sadly, that worked.
Trump has promised subsidies.
It's now an industry that's beholden to government largess that has no reason to compete, exactly how Ronald Reagan saw it happening.
Former President Ronald Reagan once cautioned, "High tariffs inevitably lead to retaliation… and less and less competition," but Donald Trump is pushing forward with steep trade barriers anyway, and U.S. tech companies could be among the hardest hit.
What Happened: In his April 1987 radio address, President Reagan made a passionate case against protectionism, warning that tariffs would "hurt every American worker and consumer," drive prices higher, and ultimately lead to job losses.
While it may look like they're doing the patriotic thing, Reagan said, over the long run such trade barriers hurt every American worker and consumer.
The US steel industry hasn't gotten more competitive since tariffs.Quote:
You see, at first, when someone says, ``Let's impose tariffs on foreign imports,'' it looks like they're doing the patriotic thing by protecting American products and jobs. And sometimes for a short while it works -- but only for a short time. What eventually occurs is: First, homegrown industries start relying on government protection in the form of high tariffs. They stop competing and stop making the innovative management and technological changes they need to succeed in world markets. And then, while all this is going on, something even worse occurs. High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars. The result is more and more tariffs, higher and higher trade barriers, and less and less competition. So, soon, because of the prices made artificially high by tariffs that subsidize inefficiency and poor management, people stop buying. Then the worst happens: Markets shrink and collapse; businesses and industries shut down; and millions of people lose their jobs.
The memory of all this occurring back in the thirties made me determined when I came to Washington to spare the American people the protectionist legislation that destroys prosperity. Now, it hasn't always been easy. There are those in this Congress, just as there were back in the thirties, who want to go for the quick political advantage, who will risk America's prosperity for the sake of a short-term appeal to some special interest group...
Last year, Nippon Steel tried to enter the US by purchasing US Steel and investing massively to make it more competitive. What happened? US steel producers banded together and lobbied the government to block the merger and keep out a real competitor. Sadly, that worked.
Trump has promised subsidies.
It's now an industry that's beholden to government largess that has no reason to compete, exactly how Ronald Reagan saw it happening.
Former President Ronald Reagan once cautioned, "High tariffs inevitably lead to retaliation… and less and less competition," but Donald Trump is pushing forward with steep trade barriers anyway, and U.S. tech companies could be among the hardest hit.
What Happened: In his April 1987 radio address, President Reagan made a passionate case against protectionism, warning that tariffs would "hurt every American worker and consumer," drive prices higher, and ultimately lead to job losses.
While it may look like they're doing the patriotic thing, Reagan said, over the long run such trade barriers hurt every American worker and consumer.
