Why hasn't the United States put a tariff on China?

@Awinds (2475)
United States
August 22, 2011 10:34pm CST
I keep hearing about how the US has a huge trade deficit with it comes to China. Yet China holds the favored trading partner status and there are no tariffs or fees that they have to deal with. But my questions is: why not remove this status and place a tariff on them? Think of the benefits. For one thing it would give some revenue to the United States and help the economy. So many Chinese goods are imported; imagine the yielding such a fee would bring! Also, China has stated they don't want to lend to us anymore, so why are we still giving them perks? Third, it might encourage some more at home manufacturing as importing stuff from China becomes more expensive. What do you think? Is this a good idea or not? Why or why not?
1 person likes this
10 responses
@scheng1 (24801)
• Singapore
23 Aug 11
Hi Awinds, a tariff will hurt the consumers of US. Imagine the declining currency has already increased the price of imported goods, even those from China by more than 10%. If the US government adds a 25% tariff, the price increase will go up by another 25%, do you think the poor people in US will like it? China is the main producer of clothing and shoes in the world. At a time when so many people are unemployed, and they are counting pennies, any increase in price means political crisis.
@Awinds (2475)
• United States
23 Aug 11
But the increased prices might encourage some manufacturing here, which help the unemployment problem and in turn the economy.
@scheng1 (24801)
• Singapore
24 Aug 11
Hi Awinds, the increased price of 25% will not move the manufacturing jobs back to the US. Even here in Singapore, we have many migrant workers who are willing to work for less than two dollars (USD) per hour. They are willing to work 12 hours per day, six days per week too. Even at this rate, we cannot attract the lost manufacturing jobs to come back. I think even if the migrant workers are willing to work for a dollar (USD) per hour, the jobs may not return. The minimum wage in US is way higher than this rate. How do you expect jobs to return with just 25 percent in price? Unless the tariff is at 400 percent, then some jobs many return, and the workers must be willing to work at minimum wage for long hours.
@Awinds (2475)
• United States
24 Aug 11
When you put it that way my idea does seem a bit unrealistic...
@suspenseful (40316)
• Canada
24 Aug 11
Besides Trump has not been elected as president yet, I think that it is because China has a large army and all those young man who will be a force against us if they attack. I do wish they would put a tariff on China. They are allowed to do things, like pollute the atmosphere and the environmentalists turn a blind eye. Yes I think it is fear of what they can do, not that their goods are cheaper. Why they have many human right violations but not a peep about it except for Christian and Right news sources.
@Awinds (2475)
• United States
24 Aug 11
The USA gets blamed for all the crud we dump into the atmosphere when China has surpassed us in that department. I also don't so China to eager to work on stuff like electric cars or national parks (major things here). You bring up an excellent point: but being so bushiness friendly with China we are supporting their less than humane methods in some manners. The Tibet takeover comes to mind...
1 person likes this
@suspenseful (40316)
• Canada
26 Aug 11
That is the trouble, turning a blind eye. Look how long it took to get to the bad things happening in Syria. And look what happened in China when they had the Olympic games. They even bowled down neighbourhoods because they were not good enough. I think the States have to be more cautious and really say that if the West is supposed to be environmentally careful, then China should be too.
@celticeagle (118231)
• Boise, Idaho
24 Aug 11
I think that it has to do with all the money the US has barrowed from CHina. How can they be in this situation and then put tarrifs and fees on China? I think that would be bad for business. I don't know how we could put stipulations on a country that is in the position they are in. It just wouldn't work and they would probably laugh us next time we ask for money too.
@Awinds (2475)
• United States
24 Aug 11
To true. I do find it disgusting though how we have enslaved ourselves to China so willingly.
1 person likes this
@celticeagle (118231)
• Boise, Idaho
25 Aug 11
The whole financial situation is disgusting!
• United States
5 Sep 11
I think alot of this is in part because they own a great deal of our debt and you don't want to tick off the hand that keeps your country afloat do ya? But yes I agree if you put tariff's on things from China it could help our economy but at the same time perhaps start a war. I've heard another solution being get organized labor unions in there to force their wages up and demand benefits then it won't be as profitable to make things there.
@Awinds (2475)
• United States
5 Sep 11
That kind if hits a nerve for me. I wonder how well China would be if not for all the greedy American companies over and if not for all the people in America that buy their cheap goods. It doesn't seem far that we owe them when in reality I think both countries owe the other. However you second solutions seems to be the better one - I mean that would benefit everyone. And it is plausible. During the industrial revolution, the Americans working in factories got tired of the pitiful conditions and wages. As the wealth grew they became more discontent. Thus started the unions. It seems only logical that as times goes by the same thing will happen in China.
@Rick1950 (1565)
• Lima, Peru
23 Aug 11
Some will say it's good but others that is not. Opinions to favor will argue that Americans have right to buy cheap products such as the Chinese. Contrary opinions will say all this hurts the production and employment in USA. Must be reciprocal tariffs for countries that trade. The problem is the rebilling of products coming from China. That is, they enter with lower prices than the real and pay almost no taxes. On this way is very difficult to compete.
@Awinds (2475)
• United States
24 Aug 11
I do think some more manufacturing jobs here in the good old US of A would help the economy though. :)
• India
23 Aug 11
ya.it is a good idea to put tariff on chinese products. specially because inspite of advice from various nations china manipulates its currency .in that way it can export at comparitively cheaper rate .this gives a blow to u.s home industry. so the tariff should me implemented in a manner that even chinese goods become equivalent to country made products in terms of price.
@Awinds (2475)
• United States
23 Aug 11
Another thing is that Chinese goods tend to be cheaply made and not of the greatest quality overall. I don't think we should be encouraging the importation of such goods.
• France
23 Aug 11
china is a big city,with a great number of the products. i think we need each other.
@Awinds (2475)
• United States
23 Aug 11
China is a big country actually. :) Isn't it possible though that one might be harming the other?
@Simon1223 (902)
• China
23 Aug 11
I'm afraid you may misunderstand the definition of Most-Favored-Nation treatment status. It is termed Permanent Normal Trade Relations in US federal law. A country that has been accorded MFN status may not be treated less advantageously than any other country with MFN status by the promising country. Briefly speaking, MFN just means fair trade treatment. In fact, tariffs and fees still exist in the trade between China and USA. According to the WTO rules, its members could not increase the tariffs unilaterally. So we'd better face this problem more rationally. You may not know the fact that many so-called Chinese exported goods are manufactured by the enterprises owned by foreign investors rather than Chinese investors, which means the profits from Sino-US trade are shared by many countries including USA.
@Awinds (2475)
• United States
23 Aug 11
So in other words we've trapped ourselves. It is true that many countries profit as you say, but it seems unequal. After all the Chinese economy has been growing in the double digits for a few years now. The US economy can't even compare to that growth. Someone is getting most of the profit and that would be China.
• Thailand
23 Aug 11
Placing a tariff on Chinese goods is in effect a tax on the people who import those goods and on the US consumer. While the Chinese exporter would be the first to pay the tariff it would be passed on to the US consumer in the form of increased prices. With the problems already facing the US consumer this is no time to add to there woes. Not a good idea.
@Awinds (2475)
• United States
23 Aug 11
I didn't think about that that far. Let us say times were different and the economy was booming. Would the strain still be to great or could the economy adapt and maybe even profit?
• Philippines
23 Aug 11
First and foremost the best idea would be to respond to China sayign they don't want to lend to the US any more by stating that is fine, however since you have gone this way we will need to claim back all buildings technologies and improvements that are in your country due to our funding. Secondly yes there should be tariffs regardless of the whys and whatfors. The US is giving them perks as you say because they don't want to upset them. I say upset them make them cry whatever. They will realize they are only where they are at because of the help of other contries eventually.
@Awinds (2475)
• United States
23 Aug 11
It does bug me that lately the US has happily been the everyone's scapegoat.