As the debate over tariffs rages in Washington, Reshoring Initiative Founder Harry Moser believes he has a better alternative to trade wars.
Moser presented his findings to the U.S. House of Representatives’ Manufacturing Caucus on June 8 and released the presentation slides via the Reshoring Initiative’s July newsletter. Among the “alternative strategies” to tariffs that should be considered, Moser cites “a combination of policies,” such as a stronger-skilled workforce, reduced corporate tax rates and regulations, lower healthcare costs, a Value-Added Tax, and universal use of the Total Cost of Ownership for sourcing decisions.
Moser argues the policy combo would “offer greater effectiveness with less collateral damage and minimal retaliation.” Once implemented, they will “eliminate the U.S. goods trade deficit, increase manufacturing by 40%, increase manufacturing employment by 5 million jobs and make both steel producers and users more competitive,” Moser said,
A recent report from the Commerce Department’s Bureau of Economic Analysis (BEA) found that expenditures by foreign direct investors to acquire, establish, or expand U.S. businesses totaled $259.6 billion in 2017, down 32% compared to $379.7 billion in 2016 amid the threat of trade wars. The amount also is well below the annual average of $359.9 billion for 2014-2016 when acquisitions of existing businesses accounted for a large majority of total spending.