Protectionism


This is what happens when we impose tariffs on imported goods.  While the intent is to promote domestic business, the result is a trade war that punishes both domestic consumers as well as domestic business.  Not only does the tariff artificially raise the cost of goods for no reason, but it also forces foreign nations to impose tariffs in return:

BEIJING — China will levy anti-dumping and anti-subsidy duties on certain US vehicle imports, the commerce ministry said Wednesday, a move likely to fuel tensions between the world’s two biggest economies.

The tariffs will be applied for two years to passenger cars and sports utility vehicles with engine capacities of 2.5 litres or more and will take effect Thursday, the ministry said in a statement.

The decision will affect vehicles produced by General Motors, Chrysler Group, BMW Manufacturing, Mercedes-Benz US International, American Honda Motor and Ford Motor.

Hopefully both sides will step away and increase free trade; tariff free.

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