It’s been a bit odd seeing the swaths of Tariffs Trump has been hitting China with. It’s based on a selection of goods. Why? We should use general logic and reason for ALL NATIONS, set up a set of rules that’s consistent. No favoritism.

And the rules themselves reward good trading partners. Here is a quick proposal which was elaborated in more detail in “A Plan for Trump”

All Tariffs are based on the sale price to the BUYER in the USA. So if it’s a wholesale price to a distributor or dealer, that is the price, not the retail price.

These are cumulative by the way:

  1. Base Security Fee   5%

Everyone would pay this. With very rare special exception to favored nations. The UK being a candidate. But it’s better if its just on for everyone. It covers all the extra costs we must pay to secure our borders AND would pay for the border wall, coast guard ships, etc.

2.  Matching Tariff  X%

Whatever the MAXIMUM tariff the nation places on our goods (including a VAT fee that we pay versus internal producers) is this amount.  So if they have a tariff of 2% on our rice, but 25% on our Harley Davidson motorcycles, we respond with a flat 25% Matching Tariff

3.  Failure to Protect Copyright or Protected Patents  10%

Any nation which is lax in protecting our intellectual property would recieve and additional 10% tariff

4.  Inability to access markets freely 10%

Rules like china’s business ownership which force companies to be set up with chinese ownership before doing business, Japan’s restricted distributor network, or any other barrier to sell freely in a market would get an additional tariff. This should be reviewed yearly and clear information given on how to correct this.

5.  Inhuman worker conditions and protections  10%

Companies which allow slave sweat shop labor  conditions with long days restricted breaks or restricted movement (the apple dorms)  restricted access to bathrooms, food, sleep, or very dangerous worker conditions, would get another tariff.

6. Programs direct and indirect to steal American Technology 20%

Joint venture technolology transfer mandates, bribing american scientists, using technology spies.

So with this system, China is in a terrible mess. They would get slapped with everything. Which is a good thing and because it’s rule based, only REFORMS would improve their situation.