I wrote this as a sample argumentative essay for my students, but I felt it was worth sharing here as well:
Self-sufficiency is often taken for a virtue, but as national economic policy, it falls squarely in the vice column. Taxing imports to increase domestic product consumption will lead to higher prices and promote strife between nations. Though “Buy American” has a nice ring to it, in today’s interconnected world, it is simply untenable. Thus, policymakers should continue to support free trade and oppose protective tariffs.
First and foremost, tariffs make everyday goods more expensive for the average consumer. Whether due to lower labor costs or more efficient production methods, products from clothing to electronics can often be manufactured more inexpensively abroad. By applying tariffs to these imports to keep pricing in line with American-made goods, we impose an unnecessary financial burden on American consumers, especially the poor. If you have a limited income, your primary concern is being able to afford the shirt on your back, not worrying where it came from.
Tariffs can also cause relations between would-be trading partners to sour. If two countries are engaged in trade, the fear of lost revenue is usually enough to keep relations peaceful (note the lack of war between the United States and China). But if one trading partner imposes tariffs on the imports of the other, the other partner has every reason to impose tariffs of their own in retaliation. This can easily lead to an escalation of tensions. Though the American Civil War was fought for many reasons, the imposition of tariffs to protect Northern industry was certainly a factor. Not only were imported British consumer goods made more expensive for Southerners, but the British market for Southern-grown cotton shrank accordingly.
Some would argue that protective tariffs are needed to keep American companies in business and save jobs. However, by propping up these companies, we take away their motivation to remain innovative and competitive. The success of Japanese midsize cars like the Honda Accord and the Toyota Camry prompted Ford to replace the Taurus with the Fusion, which went on to win several automotive awards. With high protective tariffs in place, we would continually overpay for mediocre domestic products.
From keeping money in our pockets to keeping the peace, free trade has proven to be beneficial. “Buy American” rhetoric and the protectionist policies that accompany it might appeal to our patriotism, but you can’t pay your bills with the American flag.
