Tariffs miss mark
Re: "Adding up the list of Thai concessions", (Business, Aug 2).
I am writing to express my concern regarding the approach and logic behind the Trump administration's tariffs, which have focused almost exclusively on physical goods traded between countries while all but ignoring the massive -- and growing -- role of services in today's global economy.
While much of the public and political debate has centred on tariffs applied to steel, automobiles and agricultural products, little attention is paid to the disparity this creates vis-à-vis cross-border services.
The United States is a powerhouse in digital, financial and software services, generating hundreds of billions of dollars in revenue annually from exports of cloud computing, fintech innovations, e-commerce platforms and all manner of internet-based products.
By implementing tariffs that target only the tangible goods moving between borders, US policymakers have left the far more lucrative and dynamic world of digital, software and professional services largely untouched.
This creates an uneven playing field, benefiting the US services industry tremendously while penalising other countries for goods-based exports.
It also fails to address the modern reality of trade, where intellectual property, proprietary algorithms and consulting services are often far more valuable than manufactured items.
If a fair and 21st-century trade policy is the goal, shouldn't tariffs and regulations also reflect the true nature of commerce today?
To do otherwise is to ignore the very foundation of America's current economic strength, and the interests of its global trading partners.
