” Trump has launched a campaign to fight a trade imbalance against China because ‘China and other nations trade unfairly with the United States.’ The goal is to use tariffs (or the threat of tariffs since they have not yet occurred) to get China to back down on other trade issues. What does this mean? And, how will Indian Country be impacted?” M. Trahaunt, ICTMN
“It’s important to say over and over again that a tariff is fancy word for a tax. A tariff affects how much corporate consumers are charged for, say, steel from China that is used to make a car.
And in response to such a tariff — China will levy a similar tax on its consumers when they buy pork, making that meat more expensive in China…Each side will tax products and the result will cost consumers more. And the producers of those products will make less money.
That’s where Indian Country comes in.
The tax bill will be paid every time someone buys a product that’s on the list, such as a car. And, on the other side of the ledger, Native American consumers will benefit as the price of pork (and its competitor, beef and chicken) drop because there will be more supply on the market. But the producers, the farmers, will make less.
According to the National Congress of American Indians: ‘Agriculture is increasingly important to Native economies, representing the economic backbone of more than 200 tribal communities and witnessing an 88 percent increase in the number of American Indian farmers between 2002 and 2007. According to the Census of Agriculture, in 2007 annual Indian agriculture production exceeded $1.4 billion in raw agriculture products.’
This is the trade deficit — and the Trump administration’s goal is to shrink it. And there is evidence that this trade deficit impacts wages and job creation, especially in manufacturing jobs.”