The Solution to Our Disastrous “Free Trade” Policies


Very little of what America consumes is made here. For example, nearly 50% of all new cars sold in the U.S. are foreign. Our domestic auto manufacturers are consistently losing market share and are teetering on default. With open borders—no duties or tariffs—manufacturers move jobs overseas and ship their products back here for hefty profits. Often times to the benefit of CEOs and politicians.

“Free trade” has left our economy completely unprotected.  Our country is being destroyed in an economic war, while American workers compete against foreign workers whose wages are $4 per hour or less. It is an undeniable fact that “free trade” is responsible for killing jobs in the U.S.

China, Japan and Mexico have declared an economic war on America–our constant balance-of-trade deficit attests to this. Damaging agreements like the North American “Free Trade” Agreement (NAFTA), our trade agreement with South Korea (KORUS FTA), and our treaty with the World Trade Organization (WTO) have left America unable to protect itself.

States are begging and competing for foreign companies to build factories in their state.

We have been rendered uncompetitive, defenseless and forced to accept a declining standard of living. To survive we must immediately end all free trade pacts or surrender in the economic war that is destroying us.

The solution is simple: tax reform and the return of tariffs.

The U.S. was once a prosperous and productive nation by protecting its domestic industries. Americans bought American-made products and foreign countries were taxed to sell their goods here. America is still the largest consumer nation in the world. We should not be giving away the rights to do business here for free. By examining and emulating the trade practices of Japan, China and Germany, we would generate funds and improve our trade deficit.

Initiating tariffs is the most direct way to maximize profits through trade, similar to the ones we previously had in place. Every nation except the U.S. employs taxes and protections to improve their home economy. China gathers 20% of its total revenue by a combination of value-added taxes, import consumption taxes, tariffs and customs duties. The U.S. derives 1.38% of its revenues from tariffs and customs duties (we have no import value-added tax). If the U.S. imposed a similar rate of taxation, we would have gathered $216 billion in customs, as opposed to a meager $29.1 billion.

America can’t control what China does with its economy, but we can control our own. With a growing massive trade deficit and budget deficit, we must look for solutions at home. The institution of a value-added tax and other tax reforms would strongly benefit our economy, but politicians avoid this discussion. If nations like China generate new income by taxing American companies, we should do the same.

Every nation in the world—including all of our trading partners—practices protectionism is some way. The U.S. does not protect itself, and other countries don’t hesitate to take advantage. America will continue to be at a major disadvantage in the world market if we don’t engage in protection practices—the same ones used by every other nation in the world.

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