Tariffs can be a lifeline for an industry struggling against foreign competitors that receive state tax support. They can also raise prices for other firms who rely on access to inexpensive items made globally and increase consumer costs.
So how do governments find the right balance between high and low tariffs to support companies at home? That is, of course, far more complex than we can address here.
The plastics industry has seen both sides of the equation, with the leading current example being tariffs on China-made tooling that mold makers say are needed to maintain a healthy U.S. manufacturing base while molders say it reduces their access to global toolmakers.
Expect that debate to get louder as trade groups step up to lobby in favor of tariffs that they say are needed to support a domestic supply chain, Plastics News' Catherine Kavanaugh writes.
The U.S. Trade Representative is seeking "a more granular understanding" of supply chain challenges across a range of sectors to identify potential policy solutions, Ambassador Katherine Tai said.
"The pandemic disrupted supply chains, which drove up costs on everyday goods for hardworking Americans. This is why a centerpiece of our work at USTR is developing innovative trade tools and strategies for connecting trade and other economic policy measures to advance supply chain resilience," Tai said.
