How Tariffs May Affect Eye Care

How Tariffs May Affect Eye Care
By Gretchyn M. Bailey, NCLC, FAAO


With the recent change in US leadership, tariffs have become part of day-to-day conversation. A tariff is a tax placed on goods entering or leaving a country by that country’s government.

For many, tariffs belong in macro economic discussions. However, tariffs have the potential to do more than affect multinational companies—effects from tariffs are likely to affect small independent businesses and ordinary people, such as optometrists and their patients.

At Vision Expo East in Orlando last week, in coordination with The Vision Council, attorney F.D. “Rick” Van Arnam, Jr., a partner at Barnes, Richardson & Colburn in New York, discussed how tariffs may affect eye care and outlined how today’s looming tariffs first became part of the landscape.

Tariff origins
In 2018, the Office of the United States Trade Representative opened a Section 301 investigation on intellectual property misappropriation by China that officials believe were adverse to US interests. Specifically, American companies were required to release proprietary technology to Chinese business partners as a prerequisite to the US company manufacturing or distributing in China.

Under Section 301 of the law, the federal government is able to take remedial steps to correct such bad actions. Therefore, a 25% tariff was assessed on merchandise made in China. At the time, the tariff was limited to products negatively affected by the Chinese bad actions, such as machinery. However, many more products were added to the tariff list.

China retaliated by enacting its own 25% tariff on US agriculture, of which China was a big consumer. China also identified other products that were subject to additional tariffs.

In return, the US created an additional tariff of 7.5% on a broader list of products—on top of the already established 2.5% duty on many imported items. That additional tariff increased duty on Chinese goods to 10%.

Note that a Court of Appeals case is challenging Section 301 tariffs. The case will likely be decided in the next few months, and the decision is likely to be appealed to the Supreme Court.

Eye care involvement
Eye care was affected by the additional tariffs by the involvement of things like spectacle lenses, plano sunglasses, over-the-counter (OTC) readers, low vision equipment, and lens finishing equipment.

However, companies were able to petition for relief—or exclusion—from Section 301 tariffs. If one company was granted exclusion, all other companies with similar products were also granted exclusion. For about a year, exclusions were issued for spectacle frames and reading glasses. Those exclusions ended in 2020, and attempts to renew them were not successful.

In February 2025, an additional 10% duty was announced for any Chinese origin product.

Says Van Arnam: “That 10% the eyewear company is paying to import those plastic spectacle frames from China just jumped to 20%. The same frame, if you bought it today from say Vietnam, would be a 2.5% duty; it is now 20% if it's coming from China. China is the biggest by far producer of of optical products, particularly frames.”

Mexico and Canada tariffs
Also in February 2025, a 25% tariff was announced for products coming from Mexico and Canada. This tariff was framed as action taken against the countries for allowing fentanyl and illegal immigrants into the US.

Says Van Arnam: “This was a huge deal because Mexico and Canada are two of our largest trading partners. “They are are border allies and historically have had good relations with the United States. “We have free trade agreements with both of them, which allow the vast majority of products that are made in Canada and Mexico to come into the United States free of duty and for products that are made in the United States to go into Canada and Mexico free of duty.”

Due to both Canada and Mexico making overtures to remedy the problems identified by the US, tariff enforcement was paused for 30 days. That 30-day period expires on March 4.

“Some companies in the eyecare industry who weren’t affected by the China trade were panicking because they would now be impacted by Canadian or Mexican trade,” says Van Arnam. “There is a lot of cross-border trade. You might have a lens processing facility on the Mexican side of the border with lenses sent over for processing and brought back into the United States for distribution.”

He wonders how the US will measure success for the remedies proposed by both countries.

“What metric do you use to measure fewer immigrants coming in or less fentanyl coming across the border?” he says.

Aluminum and steel
Within the past two weeks, a 25% tariff on raw aluminum and steel (and their derivative products) was announced. Most manufacturers in the eyecare space use both metals in their production, from frames to equipment.

Says Van Arnam: “These costs will ripple through the supply chain because I don’t believe any company will be big enough to absorb the cost and say it’s all on us.”

The additional duty will eventually end up in the cost of goods everywhere, including eye care. Van Arnam foresees challenges in the future because costs may not necessarily be passed onto patients or consumers due to negotiated contracts.

“Patients may have insurance which is paying only X amount,” he says. “Or maybe you’re selling frames to Veterans Affairs which won’t allow you to increase your price. There won't be a direct line from the 25% paid on the raw material to the finished value of the of the eyewear. Some of it will be absorbed, but at some point, you're going to see price hikes and hear people talking about how these tariffs will be inflationary.”

Tariffs on aluminum and steel were enacted prior to 2020; however, exclusions and agreements with other countries largely mitigated the effects. Those terms expire on March 12.

Reciprocal tariffs
The federal government is looking into imposing a tariff on all imported products, regardless of origin, to match the originating countries’ tariffs.

“There is a perceived injustice that the United States has tariffs that are historically lower than those of other countries while other countries have tariffs that are historically higher,” Van Arnam says. “The federal government is looking at what we charge for an item vs what country X charges for that item. If we are charging 2.5% for a pair of spectacle frames, and hypothetically, India is charging 10%, there is a 7.5% gap. Under the reciprocal theory, you would pay an extra 7.5% duty to import spectacle frames of Indian origin into the United States so the tariff amounts would match.”

Addressing reciprocal tariffs would likely create logistical challenges for smaller companies without the resources to quickly pivot.

Federal agencies involved with international trade are required to report by April 1 where reciprocal duties might apply. For example, will the duty apply to specific countries or specific products?

Upcoming tariff deadlines
• March 4: The 30-day pause on Mexican and Canadian tariffs expires. A 25% tariff may go into effect.
• March 12: Previous exclusions and agreements about raw aluminum and steel expire. A 25% tariff may go into effect.
• April 1: Reports due to identify where reciprocal tariffs might be applied.
 
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Thank you, Mike.

You are correct on two points.

1.My post was political. At least because it is a reflection about how the current administration is manipulating the economic stability of our country and the entire world. Not to mention the stock market. And this all absolutely relates to viability of our professional practices.

2.You wrote about the "disastrous economic policies I have 4 years of pent up complaints."

I understand and respect your conservative viewpoint, except it's not just the previous 4 years and the previous administration, it goes back friggin' decades. This is not a new issue.

We've got academically and professional trained government economic policy advisors who don't know how to get out of their own way and oftentimes make things worse. For the "average Joe" we've got so-called financial advisors who may or may not have the fiduciary responsibility to you and me, and then there is the icing on the cake: the media talking and typing heads who exist to sell advertising.

I am all in favor of "made in the USA." I do my best to support American manufacturers. I am okay with paying a little more to not buy stuff made in China. Creating American jobs is critical to our financial and political independence. But the current firings and tariffs are doing the exact opposite. They are hurting people. We have to embrace the global economy and find more appropriate ways to stimulate American manufacturing and jobs. The previous administration had been at least somewhat successful in doing that. What the current administration is doing is simply tragic, short-sighted and hurtful and pretty soon that bubble is going to explode.

Maybe that's the intention.
here's how this reads to me - ok(sorry but not really) so let me word this a little differently and see if this slides by instead of looking like I am actually doubling down on the political bs

so 15 or so comments later it appears I must be wrong

@A A Camblor what do you think if you don't mind?
 
Wait, I'm getting conflicting messages here.
John, everyone knows that it's a dynamic equation.

If China wants to change something in response, or Mexico, they are welcome to.

China can further reduce the price they're selling stuff into America to lessen the cost to the American consumer, for example.

Wages will increase as manufacturing returns to America.

The new "shipbuilding" tax credit is going to help.

People have to remember that national security depends on robust manufacturing and mining, and energy, etc. We can't offshore everything to save labor costs and environmental regulation.

What's wrong with strong union wages? Everyone decries the "minimum wage economy" so why not increase blue collar jobs?

Energy prices will decrease as we produce our own (and refine it).

It's not so simple. Economics don't work like that, as I'm sure you know, but some here apparently aren't sophisticated enough to understand.
 
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My, how the decades fly...


Reuters reported the Japanese automaker had originally planned to manufacture the model in Guanajuato, Mexico, but would now move operations to Indiana to skirt tariffs on one of its most popular car models. The news agency cited several anonymous sources with knowledge of the matter.

https://www.indystar.com/story/news...speech-congress-honda-civic-auto/81574154007/
The piece itself refutes the headline - did you read it?

"NBC fact checkers found this specific statement to be mostly false. Honda has not released any official announcement about opening a plant in Indiana"


... and later ..

"A Honda spokesperson Monday said in an email, "Honda has made no such announcement and will not comment on this report."
Gov. Mike Braun did not confirm or deny the Honda reports but said Monday he would be open to such investment in Indiana."


So there is no factory, no commitment to an investment. Like I said, if this ever opens it is going to take at least 5 years. Maybe longer. Unless they repurpose an asset they already have in the state.
 
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Hola, como estamos
 
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here's how this reads to me - ok(sorry but not really) so let me word this a little differently and see if this slides by instead of looking like I am actually doubling down on the political bs

so 15 or so comments later it appears I must be wrong

@A A Camblor what do you think if you don't mind?
Hi Tom. Not sure what you're referencing.

I have my own political opinions, but in regards to this forum, I want it to be credible. I would like to see the mods be even handed about their rules. Not doing so makes it all a farce.
 
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https://www.caranddriver.com/news/a64021813/honda-moves-civic-hybrid-production-plans/

I guess we will see. If you read closely, there's already a plant there.

NBC "fact checkers" like...Brian Williams. "False"? More like, anonymous sources were not authorized to talk about it, and Honda is neither confirming nor denying. Read the statement, especially the part about "flexibility" and "market conditions".

"Honda has made no such announcement and will not comment on this report. The Honda Civic has been made in our Indiana Auto Plant since the facility opened in 2008 based on our longstanding approach to build products close to the customer. We have the flexibility to produce products in each region based on customer needs and market conditions."
 
How private practice OD can benefit from Tariff/Inflation issues.

If you are fortunate to not be locked into VCP dependence....raise your fees. Patients will understand.
What I started doing last fall is being frank with patients. I tell them that insurance doesn't pay me much for the eye exam (about $40)--not enough to stay open. If you want us to be here to give you good exams and good care, you need to buy your glasses and contacts here.

I think it has made a difference with a few people.

I don't hit everyone with it, but "as needed."
 
https://www.caranddriver.com/news/a64021813/honda-moves-civic-hybrid-production-plans/

I guess we will see.

NBC "fact checkers" like...Brian Williams. "False"? More like, anonymous sources were not authorized to talk about it, and Honda is neither confirming nor denying. Read the statement, especially the part about "flexibility" and "market conditions".

"Honda has made no such announcement and will not comment on this report. The Honda Civic has been made in our Indiana Auto Plant since the facility opened in 2008 based on our longstanding approach to build products close to the customer. We have the flexibility to produce products in each region based on customer needs and market conditions."
Right - they already have facilities there, and they adjust the models that they build based on market demand. Which is what manufacturers always do. The tariffs are going to have little to do with whether or not they produce there, unless there is demand for a particular model.

The problem with using tariffs for some sort of long-term objective was that a promise was made to "bring down prices on day one". That of course didn't happen -- and indeed the opposite will happen with tariffs. Which we are seeing - prices are escalating.

GDP is now already forecast to be -2.8% (not good), and if it keeps up for 2 quarters, it'll officially an honest-to-goodness recession. The question will be how bad, and what can we do about it in our own professional and personal lives?
 
Right - they already have facilities there, and they adjust the models that they build based on market demand. Which is what manufacturers always do. The tariffs are going to have little to do with whether or not they produce there, unless there is demand for a particular model.

The problem with using tariffs for some sort of long-term objective was that a promise was made to "bring down prices on day one". That of course didn't happen -- and indeed the opposite will happen with tariffs. Which we are seeing - prices are escalating.

GDP is now already forecast to be -2.8% (not good), and if it keeps up for 2 quarters, it'll officially an honest-to-goodness recession. The question will be how bad, and what can we do about it in our own professional and personal lives?
He didn’t say prices would come down day one. He said he would FIX things day one to bring prices down.

What is your aversion to reciprocal tariffs? Are you thinking it’s sound policy to have other countries have high tariffs and VATS as well as blocking entire sectors from their market, but if we have the exact same trade policy here, it’s a disaster?
 
He didn’t say prices would come down day one. He said he would FIX things day one to bring prices down.

What is your aversion to reciprocal tariffs? Are you thinking it’s sound policy to have other countries have high tariffs and VATS as well as blocking entire sectors from their market, but if we have the exact same trade policy here, it’s a disaster?
Trade wars seldom work out for consumers. Nor is behaving belligerently toward one's closest trading partners (Canada, Mexico) It can serve no useful purpose. Which is why the stock market tanked - the overall value of the stock market represents the value of the companies that make up their indices, and hastily drawn-up (and ripped up!) tariffs aren't helpful or useful. Stability is important.
 
Trade wars seldom work out for consumers. Nor is behaving belligerently toward one's closest trading partners (Canada, Mexico) It can serve no useful purpose. Which is why the stock market tanked - the overall value of the stock market represents the value of the companies that make up their indices, and hastily drawn-up (and ripped up!) tariffs aren't helpful or useful. Stability is important.
So losing a trade war is better than fighting one? We’re already fighting one because literally EVERYONE blocks our goods and tariffs the heck out of us.
 
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just my interpretation of Larry's reply that seems as political based at the first one
I honestly didn't read that reply very carefully. A quick glance registered 'word salad, word salad'. Now that I have read it, a definite yes. It's more politics, whether i agree with it or not, is not the point. The mods apparently see it the same way as Larry and don't seem to see the partisanship aspects of it. Larry is very much expressing a political opinion.

I don't have a problem with what he said, or his right to say it. The problem obviously is what passes as allowed content for some and what something similar doesn't pass for others.

I think Adam is correct in demanding collegiality. Is it possible to discuss politics online without devolving? Probably not, because it's such an emotional issue for a lot of folks.
 
I honestly didn't read that reply very carefully. A quick glance registered 'word salad, word salad'. Now that I have read it, a definite yes. It's more politics, whether i agree with it or not, is not the point. The mods apparently see it the same way as Larry and don't seem to see the partisanship aspects of it. Larry is very much expressing a political opinion.

I don't have a problem with what he said, or his right to say it. The problem obviously is what passes as allowed content for some and what something similar doesn't pass for others.


I think Adam is correct in demanding collegiality. Is it possible to discuss politics online without devolving? Probably not, because it's such an emotional issue for a lot of folks.
thanks, just felt I needed a sanity or comprehension check and trusted you could provide that

I 100% agree with your added thoughts
 
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I'd like to keep this away from partisan politics (ie, the "who") and talk about the "how", and "what to do" in the environment that we find ourselves in. Same as we did with the inflation threads last year.

There are numerous issues with tariffs raising consumer prices -- this effect is well known and has been for 100 years (recall the great depression was worsened by the "Smoot-Hawley act" that we all had to read about in econ textbooks. Look it up, it was a bunch of tariffs.)

Regardless of the effect of the tariffs, their impact tended to be predictable -- meaning businesses could plan for the impact going forward.

The trouble here is that rapidly threatening a tariff, hastily implementing it, starting a trade war, then withdrawing it within days is not great, because of the instability it causes.

So your trade partners lose trust in you. Supply chains become less stable. Trade partners may not lower their retaliatory tariffs. And on and on -- it all leads to instability. And the one thing that Wall St hates more than anything is instability. For whatever reason (COVID was another great example... too many unknown unknowns to plan properly.)
So, the waters are being muddied. Sometimes that brings changes one would've not expected. Driving manufacturing back to the US a bad thing? Result? Wait for it.
 
A couple of comments.

1. I fully appreciated that my initial post might be interpreted as "political opinion," but there is a difference between that and overtly partisan political and bashing one side or the other. I tried to not be partisan and, in fact, validated Mike's reply and clarified that tariffs and messing with the economy to the country's detriment has been absolutely non-partisan, as both the dems and the repubs have screwed up with that for decades. Anyway, I understand that Adam "cleaned it up". I didn't check, but I trust he did the right thing. My message is clear. And I hope congenial. :)

Here's political opinion that is absolutely not partisan: You'd hope that learned professional economists would guide government intervention to a place where everyone benefits. That has not always (or often enough) been the case.

2. Gretchen started this thread with an analysis of how the tariffs might affect our profession, our profits and our patients costs. You might want to go back and read her and Adam's comments in that regard, because that's what we should be focusing on here, not individuals, not moderation, not partisan politics. None of that will help us or our patients.

I thought that was the purpose here. :cool:
 
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A couple of comments.

1. I fully appreciated that my initial post might be interpreted as "political opinion," but there is a difference between that and overtly partisan political and bashing one side or the other. I tried to not be partisan and, in fact, validated Mike's reply and clarified that tariffs and messing with the economy to the country's detriment has been absolutely non-partisan, as both the dems and the repubs have screwed up with that for decades. Anyway, I understand that Adam "cleaned it up". I didn't check, but I trust he did the right thing. My message is clear. And I hope congenial. :)

Here's political opinion that is absolutely not partisan: You'd hope that learned professional economists would guide government intervention to a place where everyone benefits. That has not always (or often enough) been the case.

2. Gretchen started this thread with an analysis of how the tariffs might affect our profession, our profits and our patients costs. You might want to go back and read her and Adam's comments in that regard, because that's what we should be focusing on here, not individuals, not moderation, not partisan politics. None of that will help us or our patients.

I thought that was the purpose here. :cool:
I don't have a problem with you expressing yourself. I am in agreement with you on many things. It's the rules of the forum and how they are "moderated" that is the source of consternation.

But you should know by now when you are making a political statement. Maybe you haven't gotten warnings like many of us have. I'm done bringing it up anymore. The point has been made.
 
I am not talking about inflation right now but if you can't read post #20 and not see politics then I can't help you. I like Larry alot. He is a great guy and a great doc that cares for his patients but his post is blatantly political.

It is no secret that I lean way conservative BUT I have gone out of my way to not engage in politics since the rules were changed right about the time Biden was elected. That is fine with me, your house your rules, but lets not suddenly develop blindness now that a new guy is POTUS.

It is stuff precisely like this that has led to no less than at least 15-20 posters no longer posting here. You don't see it but others do.
Nah, it wasn't political. It was cause and effect concerning tariffs. When I hear tariffs I think of two things now when it was just one in past history. Smoot-Hawley and you know who are now in the history books. Fortunately China will not start a war because of it.
 
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I don't know enough about which countries pay which tariffs to which others and on which products but it seems to me that as long as there are places in the world where you can pay people pennies a day to produce our trinkets, manufacturing will not return to the USA in any meaningful way and/or the cost of everything and therefore inflation will skyrocket.
 
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I don't know enough about which countries pay which tariffs to which others and on which products but it seems to me that as long as there are places in the world where you can pay people pennies a day to produce our trinkets, manufacturing will not return to the USA in any meaningful way and/or the cost of everything and therefore inflation will skyrocket.
Hey, Ken, guess what also happens?

Wages go up from better-paying jobs.
Our manufacturing base is strong (remember WWII).
Our kids can get good jobs without going to woke college and studying transgender world history.
Our medications can be made here and not in India.


Of course there won't be the bullcrap $4 TEMU things that float out of China. What's the big loss? Maybe when I go to Home Depot for a toilet tank tower, I can find one that's NOT $12.00 that WILL last ten years so I don't have to change it every three.
 
Hey, Ken, guess what also happens?

Wages go up from better-paying jobs.
Our manufacturing base is strong (remember WWII).
Our kids can get good jobs without going to woke college and studying transgender world history.
Our medications can be made here and not in India.


Of course there won't be the bullcrap $4 TEMU things that float out of China. What's the big loss? Maybe when I go to Home Depot for a toilet tank tower, I can find one that's NOT $12.00 that WILL last ten years so I don't have to change it every three.
Jeff,

I think that that is all true "in theory" but never seems to play itself out in the real world.

Corporations have been addicted for decades to cheap foreign labor because they have taken the attitude that if there was a way to wring out one more nickel of profit for a shareholder dividend or a CEO bonus, then to do NOT do so was somehow unethical at best and completely unAmerican at worst. Any manufacturing brought back to the United States is likely going to be done mostly by robots.

Now Main Street's whitewashed windows
And vacant stores
Seems like there ain't nobody
Wants to come down here no more
They're closing down the textile mill
Across the railroad tracks
Foreman says, "These jobs are going, boys
And they ain't coming back
To your hometown
 
Now Main Street's whitewashed windows
And vacant stores
Seems like there ain't nobody
Wants to come down here no more
They're closing down the textile mill
Across the railroad tracks
Foreman says, "These jobs are going, boys
And they ain't coming back
To your hometown
B.S.?
 
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I don't know enough about which countries pay which tariffs to which others and on which products but it seems to me that as long as there are places in the world where you can pay people pennies a day to produce our trinkets, manufacturing will not return to the USA in any meaningful way and/or the cost of everything and therefore inflation will skyrocket.
I'm obviously no economic expert. There seems to perhaps some truth to your statement. Perhaps (treading lightly :)) at least partly these tariffs are being imposed to let our "allies" and trading partners know the gravy train is over and the USA expects to be treated fairly in our trade arrangements (basically EVERYONE charges us significantly larger tariff rates than we charge them) moving forward and our Northern and Southern "allies" are expected to respect out border. After all, the US economy is several magnitudes larger than Canada and Mexico combined. A little respect shouldn't be too much to ask. Previous administrations (Republican and Democrat) should have done more, IMO.

Backing away slowly...very unfortunate I need to do so.
 
Jeff,

I think that that is all true "in theory" but never seems to play itself out in the real world.

Corporations have been addicted for decades to cheap foreign labor because they have taken the attitude that if there was a way to wring out one more nickel of profit for a shareholder dividend or a CEO bonus, then to do NOT do so was somehow unethical at best and completely unAmerican at worst. Any manufacturing brought back to the United States is likely going to be done mostly by robots.

Now Main Street's whitewashed windows
And vacant stores
Seems like there ain't nobody
Wants to come down here no more
They're closing down the textile mill
Across the railroad tracks
Foreman says, "These jobs are going, boys
And they ain't coming back
To your hometown
Springsteen...
 
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I am selling two boats and my wife is buying our retirement boat, it was built in Netherlands.
It landed on the east coast and was shipped to Washington state a few years ago.
Import duty papers are no where to be found and CBP has no record of entry. We are processing the “entry”now at 1.5% duty instead of waiting for the marine tariffs to be in play at 25% or whatever number.

On balance I am a yes vote on tariffs.

How does this relate to eye care?

Lots of eye care done to pay the duty on the boat.

Maui Jim strikes me as in interesting case on tariffs.
Us company, HQ in IL, lenses manufacturer in state, but all the frames come in from Italy and Japan as far as I can tell.
We shall see.

p.s. I watched Brett Baier interview the DOGE leadership team on the tube last night, I recommend viewing for all Americans.
 
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From an econ 101 perspective, tariffs are a tax, and all taxes are bad because they create deadweight loss, leading to a loss in total societal welfare.

Almost all economists agree that societal benefits (building roads, schools, etc) to many taxes (income, sales, property, etc) outweigh these deadweight losses and are a necessary evil.

Almost all economists also agree that societal benefits to tariffs do not outweigh these deadweight losses, largely because (1) they are less efficient than consumption taxes, and (2) they create another economic evil: decreased trade.

Therefore, there is no economic argument for tariffs. (at an econ 201 level, there are a few economically theoretical uses of tariffs in very limited circumstances, but at an econ 301 level, they have almost universally been implemented poorly and everyone would have been better off with no tariffs instead of the incorrectly-executed ones.)

While there can be political argument for tariffs, using political arguments for an economic tool is like using political arguments for any other subject, including medicine: you can do it, but you don't have the intellectual and real-world backing of years of studies and observed results inside that subject.

I trust experienced businessmen more than "professional economists" every day of the week.

Here, I disagree with Dr. Nelson's perspective of trusting experienced businessmen more than professional economists on the subject of tariffs. Businessmen may deal with tariffs, but they do not understand the theory and history behind them. I trust experienced politicians when it comes to politics, experienced businessmen when it comes to business, experienced economists when it comes to economics, and experienced optometrists when it comes to optometry. I do not trust experienced politicians nor experienced businessmen nor experienced optometrists when it comes to economics.

I wonder if Dr. Nelson also trusts experienced businessmen more than professional optometrists when it comes to optometry?

I trust myself a little more than most when it comes to economics as I majored in it, although I still trust the years of research and overall thoughts of professional economists over my own ideas on the subject.

As usual, Wikipedia offers a great overview where you can decently educate yourself in just a few minutes: https://en.wikipedia.org/wiki/Tariff
 
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I think it's insane that some Americans (and others) don't think the largest economy in the world should expect to be treated fairly when it comes to Trade. Every country gets considerable benefit trading with the USA and almost all of them charge significantly larger Tariffs than we do. Our Northern and Southern neighbors don't respect our economy or border at all. Canadians are threatening not to vacation in the USA or buy our products. If Americans reciprocated who do you think would feel the most pain?

Canada is privileged in having the country with the world's strongest military as a neighbor, meaning they don't have to spend hardly anything on defense. Do they say thank you? Nope. They whine, and cuss, threaten and gnash their teeth that the USA dare to expect to be treated fairly. Instead of gratitude for their security they poke fun at our Defense spending. Pretty darn obnoxious.

Was planning atrip to Vancouver but have decided to boycott Canada. I hope other Americans do the same.
 
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so should Americans be concerned about the imbalance and use of tariffs against the US? it seems a balanced playing field should be pursued if not able to eliminate them
Have the Canadians historically been charging tariffs on good they import from the U.S.? I can tell you that they are mighty concerned about the Chinese that will be imposing a larger tariff on Canadian canola seed and canola oil. The Canadians do, however, charge a 100% tariff on Chinese vehicles. I wonder if the Canadians export any vehicles to China (doubt it).

A few years ago, I had read that the Chinese loved buying American made Buicks. Wonder if there were any tariffs that applied.
 
I queried ChatGPT on the question of tariffs.

Has Amazon, Walmart, HomeDepot and the USA automobile sector benefited from the past tariff situation?

ChatGPT said:​

Yes, these major corporations and industries have, in different ways, benefited from past tariff situations. Here’s how:

Amazon, Walmart, and Home Depot (Retail & E-Commerce)

  1. Low-Cost Imports Helped Profits
    • Historically, the U.S. has had low tariffs on consumer goods, allowing Amazon, Walmart, and Home Depot to import cheap products from countries like China, Vietnam, and Mexico.
    • This kept costs low, boosting profit margins while offering low prices to consumers.
  2. China’s Low Tariffs on E-Commerce Helped Amazon
    • Before the U.S.-China trade war, China had low or zero tariffs on e-commerce shipments under de minimis rules (small packages under a certain value).
    • This allowed Amazon to sell U.S. products to Chinese consumers more easily than traditional exporters.
  3. Walmart’s Supply Chain Advantage
    • Walmart has heavily relied on Chinese manufacturing to keep prices low.
    • The U.S. did not impose high tariffs on most imported consumer goods, allowing Walmart to dominate the low-cost retail market.

U.S. Automobile Sector

  1. Foreign Market Barriers Limited U.S. Exports
    • While U.S. auto companies faced high tariffs abroad (e.g., 25% in China, 10% in the EU), they benefited domestically by selling more in the U.S. market.
    • However, American automakers struggled to expand internationally due to tariff disadvantages.
  2. Foreign Car Manufacturers Benefited More
    • While Ford and GM faced high tariffs abroad, companies like BMW, Toyota, and Honda built factories inside the U.S. to avoid tariffs and gain U.S. market share.
    • This strategy helped foreign automakers more than it did American brands.
  3. Tariffs on Steel and Aluminum Increased Costs
    • The Trump administration’s tariffs on steel and aluminum (2018) hurt U.S. automakers by raising material costs.
    • This made U.S.-made cars more expensive compared to foreign brands that sourced materials differently.

Who Benefited the Most?

  • Retailers like Walmart, Amazon, and Home Depot benefited the most from low import tariffs on consumer goods.
  • The U.S. auto industry had mixed results—while it protected domestic sales, it struggled in foreign markets.
  • Foreign automakers that built U.S. factories (Toyota, BMW, etc.) gained more than Ford and GM because they bypassed tariffs while benefiting from the U.S. market.
 
Jonovan:
"Societal benefits". Really?

In theory "free trade" has all sorts of ideal outcomes. In politics "fair trade" is a cudgel to be used to justify tariffs.

But in the real world, using tariffs for certain outcomes makes sense.

There are times for "freer trade" and there are times for "more restrictive trade" just like there are times for tight money policies and loose money" or open borders and closed borders.

The government uses tools to achieve desired outcomes in a lot of ways.

Would it be better to have some libertarian economic principles running full bore at all times? Probably, but again "societal benefits" can be bigger than economics.