The notion that tariff taxes will balance out trade and create greater fairness in global commerce is complete nonsense in my opinion. If we watch the response from markets each time a tweet or statement about tariffs is made, we would understand that market players are not bullish on this policy. Rather, there is negative sentiment toward tariffs, and history shows nobody wins a trade war.
For the first time in more than a decade there is great potential for global growth. It has taken many years to get the engines warmed up, but we are finally there. This is important, as it seems to be the only driver to create some wealth and hopefully make some inroads to paying off some of the enormous debt that has mounted worldwide. I realize the numbers are mind-boggling, but then just 10 years ago the world was facing a devastating financial crisis that could have crippled economies worldwide. Don't forget that.
The talk of taxes on trade will have far-reaching effects and likely won't balance out trade. If anything, trade may slow down or disappear altogether, unwinding much of the growth in commerce that emerged from free trade agreements from 20 years back.
Maybe the terms were unfair to the United States; I really don't know for sure. But I do know that taxes will have an overall negative impact down the road, and with worldwide growth potential high, this is no time to mess around with tariffs that won't get the job done.
I can't say talk of tariffs inspires growth in the long run, but maybe it's just rhetoric. If that's the case, perhaps just the threat of tariffs from this administration will be enough to start some negotiations.