Eliminating Trade Barriers Helps American Workers, Consumers
(Washington, D.C.) – Some of the trade policy proposals being advanced and debated by presidential candidates today would likely lead to international trade disputes that hurt American families badly. The imposition of new taxes on imported goods bought by Americans would raise consumer prices on everything from gasoline to cellphones to clothing. As America’s trading partners retaliate with tariffs and other trade barriers of their own, American jobs that depend on exports would be lost, American companies would lose billions in revenue, and wage stagnation would likely increase.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
When government adds trade barriers (or offers subsidies through an agency like the Export-Import bank), it inevitably picks winners and losers – harming some workers and industries in order to reward others. Reducing barriers, on the other hand, expands trade and strengthens our economy – by empowering millions of workers and consumers to make decisions on their own, in a free and competitive market. We have seen over decades that when government gets out of the way, American workers and consumers both benefit through trade. Since more than half of U.S. imports are “intermediate goods” used to make finished products, trade restrictions would make those finished products more expensive and less competitive here and abroad.
Hispanic-owned businesses are more involved in export and import than the national average, and immigrant businesses in particular are nearly twice as likely to export as non-immigrant firms. Our community – and all Americans – stand to lose jobs and see their wages reduced under protectionist ideas that may sound appealing, but which would be destructive in reality. Expanding trade can have the opposite effect and help our economy flourish. America stands to benefit from competition at a global level.”