Read the following opinion piece, Are Trade Wars Good for America.pdf (Attached) Please only use this article as your reference. Do not use any outside source. The Economic Consequences of Trade Wars Question: The author argues that tariffs lead to inflation, job losses, and a decline in consumer purchasing power. Analyze the economic consequences of trade wars using historical examples or economic theories. Do tariffs ultimately protect or harm the American economy? Support your argument with evidence.

Essay requirement:

Double-Spacing: Ensure your essay is double-spaced throughout.

Font: Use a standard font like Times New Roman or Arial, size 12.

Guidance

● Introduction (approx. 50-75 words): ○ Briefly introduce the topic. ○ Clearly state your thesis statement. ○ Provide a brief overview of the points you will discuss.

● Body Paragraphs (approx. 100-250 words total, split into 1-2 paragraphs):

○ Each paragraph should focus on a specific point that supports your thesis.

○ Provide evidence, examples, and analysis to back up your claims. Be specific!

○ Use transitions to connect your ideas smoothly. ● Conclusion (approx. 50-75 words):

○ Briefly summarize your main points. ○ Restate your thesis in different words (but don’t just copy it). ○ Offer a final thought or perspective on the topic.

https://sfsu.instructure.com/courses/53955/files/6239449?wrap=1

Are Trade Wars Good for America? Working Americans Will Pay the Most – Ahmad Al-Ansari

In this writing, the tariff standoff with Mexico has been postponed after a rapid series of phone conversations between President Trump and Mexican president Claudia Sheinbaum. Canadian Prime Minister Justine Trudeau reached tentative agreements on border security, fentanyl, and other issues. Initially, it looked like the United States was provoking trade wars with its neighbors and allies. Do not get too comfortable with the temporary fix— one never knows with Americans these days. Our policies are temporary solutions to permanent challenges, swinging to extremities with each succeeding presidential administration. And one can never predict what the Disrupter-in-Chief will do next. These tariffs are not merely a fiscal maneuver; they represent a fundamental shift in US

trade policy that could lead to a recession. These tariffs will not only provoke retaliatory

measures (China has already imposed tariffs on US goods), but will hasten inflation,

reduce consumer purchasing power, and ultimately hinder economic growth. The

consequences of President Trump’s tariffs will be far-reaching— it will undermine the

economic stability of our country.

One of the most immediate effects of tariffs is the increase in prices for consumers. By

now, Americans have heard this warning repeated several dozen times. We have been

made aware that tariffs act as a tax on imported goods in which businesses will pass

the costs onto consumers. A recent analysis indicated that the average American

household could see a reduction in income equivalent to $1,170 due to these tariffs, as

businesses adjust prices to maintain profit margins. This increase in consumer costs is

particularly worrisome in a time when inflation is already a pressing issue for most

Americans. The American Action Forum estimated that Trump’s tariffs will increase

consumer costs by approximately $51 billion annually, translating to an average tax

increase of $625 per household each year.

https://substack.com/app-link/post?publication_id=3322997&post_id=156305137&utm_source=post-email-title&utm_campaign=email-post-title&isFreemail=true&r=3lo3n&token=eyJ1c2VyX2lkIjo2MDQ5ODU5LCJwb3N0X2lkIjoxNTYzMDUxMzcsImlhdCI6MTczODY5ODg0NywiZXhwIjoxNzQxMjkwODQ3LCJpc3MiOiJwdWItMzMyMjk5NyIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.dbgb8UJJy_7h4zDr6h2tp3iyYTK_tfqwAXnUnx9_awQ

Retaliation from Trading Partners

China did not waste any time. And if those tentative agreements fail, neither will Mexico

and Canada back peddle to appease Donald Trump. The tariffs will certainly provoke

retaliatory actions from affected countries. The isolationist agenda of the Trump

administration will result in a full-blown trade war. Retaliation not only affects the specific

goods but also leads to broader economic repercussions— including reduced exports

and job losses in industries reliant on international trade.

The Tax Foundation estimates that the proposed tariffs could shrink economic output by

.04%, which will cause significant job losses. Americans will lose close to 150,000 jobs

because of Donald Trump’s tariffs— jobs that Americans are willing to do. The long-term

implications of these tariffs are even more concerning. Economic models predict that

tariffs will compound economic decline due to decreases in investment and consumer

spending. The Billionaires backing Trump’s trade war will not be impacted by higher

prices or reductions in disposable income. They will not feel the effects of these tariffs

as our economy moves closer to recession. The real losers will be the American people.

Inflationary Pressures

It does not take an economist to understand how this works. Inflation is a critical

concern in the context of these tariffs. As import prices rise, the cost of goods

domestically produced may also increase, leading to a broader inflationary environment.

The Federal Reserve has indicated that inflationary pressures could worsen as a result

of these tariffs, which could further erode consumer purchasing power. Is that what

inflation does— erode purchasing power? See, I told you that one did not need to be an

economist to understand this. A combination of rising prices (inflation) and stagnant

wages will lead to a decrease in consumer confidence, which is necessary for economic

growth.

The Political Ramifications of Trump’s Isolationism in Trade Policy

The tariffs reflect a broader trend towards isolationism in US trade policy, which is

counterproductive in an interdependent global economy. By alienating key trading

partners and adopting confrontational stances, the US risks losing its competitive edge

in global markets. President Trump’s approach not only undermines international

alliances— it also diminishes the potential for collaborative economic growth and

diplomacy.

The political climate surrounding these tariffs is equally troubling. In our domestic

politics, the demand for “apologies” from opponents of Donald Trump’s trade policies

and other unprecedented initiatives reflects a growing intolerance for dissenting

opinions in our democracy. Freedom of speech is the basis of effective governance and

policy-making. When political discourse is stifled by hysteria and demands for

conformity, the result is often poor policy decisions that do not reflect the interests of the

American people. Billionaires crafting American trade policy do not adequately

represent the biggest stakeholder— America’s vast working class.

The imposition of tariffs on Canada, Mexico, and China as a means to address

immigration and drug trafficking is a misguided strategy that risks triggering trade wars

with key economic partners and political allies. While the intention behind these tariffs

may be to exert pressure on these nations to change their policies, the reality is that

such measures are likely to backfire, leading to economic repercussions that will be

most acutely by American workers and consumers. These tariffs will certainly set off a

chain reaction, resulting in disrupted supply chains, increased costs, and greater harm

to the very people Donald Trump promised during his campaign to protect.

The use of tariffs as a punitive tool reflects a fundamental misunderstanding of the root

causes of immigration and drug-related issues. These are complicated, multifaceted

challenges that require cooperative international solutions rather than unilateral

economic sanctions. The deal struck between the Bukele government in El Salvador

and the Trump administration to house “criminal” detainees is not a cooperative

international solution. Rather, diplomatic engagement and substantive multilateral

cooperation are far more effective strategies for encouraging the kind of global

collaboration needed to tackle issues like immigration reform and drug trafficking.

A much closer look at the economic fallout from these tariffs will aggravate domestic

issues like job losses. American businesses, particularly those in the manufacturing and

agricultural sectors, will find themselves at a competitive disadvantage as they face

higher output costs and reduced access to foreign markets. This will lead to layoffs and

a slowdown in economic growth— threatening the livelihoods of countless American

workers.

Ultimately, a trade policy driven by heavy-handed tariffs is not only counterproductive

but also detrimental to the long-term interests of the United States. Policymakers must

recognize the limitations of such an approach and instead pursue strategies that

emphasize collaboration, principled negotiation, and mutual benefit. President Trump

needs to return to the business of building stronger economic partnerships and

addressing the underlying causes of the global problems impacting Americans. A more

predictable Chief Executive can ensure a more stable future for Americans and maintain

our nation’s leadership role on the world stage.

Are Trade Wars Good for America?
Working Americans Will Pay the Most – Ahmad Al-Ansari
In this writing, the tariff standoff with Mexico has been postponed after a rapid series of phone conversations between President Trump and Mexican president Claudia Sheinbaum. Canadian Prime Minister Justine Trudeau reached tentative agreements on border security, fentanyl, and other issues. Initially, it looked like the United States was provoking trade wars with its neighbors and allies. Do not get too comfortable with the temporary fix— one never knows with Americans these days. Our policies are temporary solutions to permanent challenges, swinging to extremities with each succeeding presidential administration. And one can never predict what the Disrupter-in-Chief will do next.

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