Actually, tariffs work — look no further than China's booming economy for proof

As President Donald Trump imposes tariffs on Chinese goods, opponents warn that trade sanctions will boomerang back and hurt the U.S. economy. But these same critics overlook several key lessons from recent global trade history. And what they ignore is that China’s own meteoric rise was driven by a staunchly nationalist trade strategy.

Some brief history. For the past 25 years, China has implemented every pillar of a protectionist trade agenda. Starting in 1994, Beijing deliberately undervalued its currency against the dollar to make Chinese exports cheaper in the US market. It raised tariffs on a wide range of U.S. goods, including everything from consumer products to automobiles. It levied a value-added tax that encouraged its manufacturers to target export markets. It funneled hundreds of billions of dollars in subsidies to key industrial sectors. And it mandated the transfer of proprietary technologies to “partner” companies before allowing US companies access to its consumer market.

Internally, the real-world effect of such a strategy was to tax China’s population, and to raise the cost of goods and services. And devaluing its currency added further to consumer woes, since it made imports more costly.

China's history proves tariffs work

Why did Beijing subject its citizenry to such austerity? Because it worked. Economic growth in China averaged 10 percent a year from 2000 to 2007, and has recently run in the 6 to 7 percent range, while so-called advanced nations struggle to reach 3 percent.