Our nation's 45th President is dead
set on a trade war. He has increased tariffs on goods produced in
China, and he has now indicated that he will increase tariffs on
goods produced in Mexico. While the President will say that this is
a tax on the countries he is imposing tariffs on, the fact is that it
is a tax on people who buy goods produced in China or Mexico.
Products manufactured in China include electronics and electronic
components, televisions, washing machine and refrigerators, and more.
With a 25 percent tariff, a $300 dishwasher will now cost $375. The
duty won't take effect today or tomorrow, but within a few months, US
sellers will have no choice but to pass the cost along to consumers.
The
tariff on Mexico will mostly hit agriculture. The President says he
will impose a 5 percent tariff effective next week and will increase
by another 5 percent monthly. It will primarily affect agricultural
products like avocados and tomatoes, but folks who enjoy a Mexican
beer or two will find those beers more expensive. Here's the rub,
though. While Mexico exports more than $250 billion in goods to us,
we also export at least $20 billion to them. Farmers who send
soybeans and corn to Mexico are vulnerable if Mexico decides to
retaliate by imposing tariffs of their own.
45
says he is imposing the tariff on Mexican-produced goods because of
border immigration. The tariffs, 45 states, will be lower if Mexico
can stop border immigration. But the tactic of increasing tariffs
will have a negative effect on the Mexican economy, exacerbating,
instead of abating, border immigration. And it will hit every
consumer in the pocket. Because so many US auto companies have cars
assembled in Mexico, at the maximum tariff, the average car will cost
at least $1000 more. And what about the grocery basket?
Tariffs
are used to direct consumers away from foreign manufacturers and
toward national ones. Theoretically, if a Mexico-produced avocado
costs $2 with a tariff (maybe up from $1.50 without, numbers all
theoretical), and a California-produced avocado costs $1.75, a
cost-conscious consumer, given the tax, might choose the California
avocado over the Mexican one. But if California can't produce enough
avocados to meet demand, folks will pay more with the tariff. It's a
tax on consumers. Will people be as willing to take the hit with a
$1000 tax on an automobile? Possibly not. People may delay
purchases instead of seeking out domestic automakers. In any case,
it's a hit on the US economy.
Because
African Americans earn less (with a median family income under
$40,000, compared to $60,000 plus for whites), we are more likely to
be the consumer affected. Consumer taxes are regressive taxes, taxes
that hit the folks at the bottom hardest. Our voices need to be
raised around the tax on Chinese produced goods, as well as the tax
on Mexican manufactured goods. In his fit of pique, however, 45
doesn't get that he will hurt the consumers he vowed to protect, not
the countries he is trying to punish.
Unfortunately,
African American engagement in foreign policy has been peripheral.
We've had folks like Secretaries of State Colin Powell and
Condoleezza Rice take leadership on foreign policy, and folks like
Mel Foote, of the Constituency for African, lead civil society
organizations around foreign policy. And we can go all the way back
to Frederick Douglass' ambassadorship to Haiti in the 19th century to
illustrate our concern with foreign policy, even as we struggled in
the aftermath of enslavement. Still, when African Americans are
polled, foreign policy issues are not our most important. They must
and should be, and for several reasons. First of all, we pay taxes
for foreign aid. Secondly, people of color around the globe
(including Mexico) are oppressed by US foreign policy. Further, we
fall short of our rhetoric about democracy and human rights when we
offer financial support to countries that choose to marginalize some
of its citizens.
African
American people are uniquely situated to lift our voices around
foreign policy hypocrisy. The late great political scientist Dr. Ron
Walters talked about "foreign policy justice," about the
many ways we favored some nations, ignoring others, usually for
strategic reasons. We can't tout democracy and then suppress it.
Wait! We always have. We did it when veterans were lynched when
they came back from World War I. We did it when we treated German
prisoners of war better than returning veterans after World War II.
But we don't have to cosign the hypocrisy now. If we, black folks,
believe in freedom, we must believe in foreign policy justice. And
we must understand that foolish tariffs against Mexico will hurt us
all.
Black
voices need to be loud voices around foreign policy matters. Or we
can be silent and accept the economic, moral, and political
consequences of our nation's biased myopia.
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