Supporters of imposing tariffs believe that this way they support the domestic producer. Yes, everything is logical: we have established protective tariffs, the goods are imported at high prices or not imported at all, so it becomes profitable to produce it ourselves. This is the logic that Trump adheres to.
But there is another side to the coin — this will lead to problems for American families, as money will be taken from their wallets.
If we go back to the period when the United States of America had just proclaimed itself, stood firm in the struggle for independence, and was, probably, to put it in today's terms, an agrarian power, they imposed protective tariffs. What logic were they acting on? Does it turn out that all the goods they imported were expensive for them?
I asked this question to Doctor of Economic Sciences Vladimir Osipov.
«The logic is really always the same. As you rightly pointed out, by imposing tariffs, we are trying to protect our own market or develop our own production.
But it is important to understand that in the short term, we do indeed see an increase in prices for products. Why? Because we cannot just snap our fingers and start producing goods that have suddenly become more expensive due to tariffs.
When this happens, it is obvious that goods become more expensive. American families, in this case, have to pay more for these goods until American producers understand that they need to shift to this market and start investing funds in purchasing equipment and building new factories and plants.
Until that time, we will observe price increases and the very inflation will arise. Why is protectionism bad? Because it initially causes inflation.
But Trump understands what he is doing, realizing that in the medium and especially long-term perspective, protectionist policies bring their results.