Did you know? The Patriot Post is funded 100% by its readers. Help us stay front and center in the fight for Liberty and support the 2024 Year-End Campaign.

May 3, 2017

Trump’s Tariff Will Hurt Americans

With the accusation that Canada is “dumping lumber” on the United States, the Trump administration last week announced plans to impose tariffs of up to 24 percent on imports of Canadian softwood. U.S. lumber companies complain that Canada unfairly subsidizes its lumber industry by letting Canadian loggers cut trees cheaply on government land, and then sell the wood at below-market prices in the United States.

With the accusation that Canada is “dumping lumber” on the United States, the Trump administration last week announced plans to impose tariffs of up to 24 percent on imports of Canadian softwood. U.S. lumber companies complain that Canada unfairly subsidizes its lumber industry by letting Canadian loggers cut trees cheaply on government land, and then sell the wood at below-market prices in the United States.

“Things like this I don’t regard as being a good neighbor,” Commerce Secretary Wilbur Ross told reporters. President Trump declared that Canada’s behavior is “a disgrace” and that “we can’t let Canada or anybody else take advantage. … This is another NAFTA disaster, and we’re not going to let it continue onward.”

The U.S.-Canada lumber dispute is decades old; this eruption is only the most recent. But suppose for argument’s sake that Canada does subsidize its timber industry, and that Canadian companies as a result are able to sell the softwood lumber prized by U.S. homebuilders at a bargain price. How does it follow that Canada is being a bad neighbor, or that Americans are being unfairly taken advantage of? A more sensible conclusion is that the Canadian government is bestowing a valuable benefit on its neighbors to the south.

Rational men and women don’t punish individuals who do them a kindness. So why should we retaliate against a nation that does so? Suppose Canada, as a gesture of admiration for the people of the United States, decided to send us $5 billion worth of softwood lumber each year — for free. Would Trump, or any president, blast the Canadians for their perfidy? Of course not. The benefit to Americans of such a windfall would be obvious to everyone. Thanks to the Canadians’ gift, our nation would be wealthier.

The difference between getting Canadian wood for free and getting it at a discount is one of scale, not of kind. To the extent that Canada subsidizes its timber exports so Americans can buy it cheaply, it makes our nation wealthier. Trump should be beaming with pleasure and extolling Canada for its beneficence.

It is understandable that U.S. sawmills aren’t happy about having to compete with rivals who can beat them on price. But that’s true in every industry. In a thriving market, price competition should be a given. Pressure from competitors who can offer lower prices forces companies to compete in other ways — improving quality, providing better service, finding technological innovations, winning new markets. All that is good for business — and really good for consumers.

Who benefits when prices for Canadian lumber — which accounts for 30 percent of the wood used to build U.S. homes — are low? The millions of Americans employed in housing construction do. So do those who work in all the industries sustained by housing. So do the hundreds of thousands of U.S. families that buy homes each year.

The administration’s tariff on Canadian timber will hurt all those millions of workers and consumers. And it will indirectly hurt countless others, who will be made worse off as the negative effects of the tariff ripple through the economy.

Trump says his protectionist tariff is meant to stop Canada from “taking advantage” of the United States. But that’s nonsense. Canada forces nobody to buy its timber. Not a single plank or particle of wood pulp enters the United States unless an American purchaser has freely chosen to import it. The new tariff doesn’t protect; it impairs. It prevents willing buyers and sellers from trading on terms that would have been agreeable to both. And it will inflict on U.S. homebuilders a loss they don’t deserve in order to reward U.S. lumber companies with a jackpot they didn’t earn.

Far from making America great again, protectionism will only make it poorer.

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!


The Patriot Post and Patriot Foundation Trust, in keeping with our Military Mission of Service to our uniformed service members and veterans, are proud to support and promote the National Medal of Honor Heritage Center, the Congressional Medal of Honor Society, both the Honoring the Sacrifice and Warrior Freedom Service Dogs aiding wounded veterans, the Tunnel to Towers Foundation, the National Veterans Entrepreneurship Program, the Folds of Honor outreach, and Officer Christian Fellowship, the Air University Foundation, and Naval War College Foundation, and the Naval Aviation Museum Foundation. "Greater love has no one than this, to lay down one's life for his friends." (John 15:13)

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

Please join us in prayer for our nation — that righteous leaders would rise and prevail and we would be united as Americans. Pray also for the protection of our Military Patriots, Veterans, First Responders, and their families. Please lift up your Patriot team and our mission to support and defend our Republic's Founding Principle of Liberty, that the fires of freedom would be ignited in the hearts and minds of our countrymen.

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2024 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.