Kevin O’Leary, “Shark Tank’s” Mr. Wonderful, disagrees with Donald Trump about tariffs on Chinese goods.
“The current tariffs, around 145 percent, don’t go far enough. To come out on top, the U.S. should impose 400 percent tariffs,” O’Leary writes in The Free Press.
Advertisement
No one has started a war over trade since the 17th century, when the British and Dutch, the two most powerful navies at the time, fought three wars over trade routes and markets. That’s a shame. Perhaps what China needs to join the rest of the civilized world in trading fairly would be to receive some “hot metal and cold steel” until it agreed to stop stealing intellectual property, closing the door to foreign goods, and forcing Western companies to “partner” with the Communist government just to do business in China.
China doesn’t play by the rules because no one forces them to. No effective enforcement mechanism can be used by the World Trade Organization (WTO) that would bring China to heel.
This is not just an American problem. So why doesn’t the industrialized world fight back?
Because there are a billion customers in China and no one wants to be shut out.
If that sounds simplistic, it is. The psychology behind China’s flouting the rules is embedded in its national identity. Put simply, China believes in its own superiority and its destiny to rule the world. Rules are for other nations. If China can’t find a way around the rules, it ignores them and dares the rest of the world to punish it.
Advertisement
Intellectual property rights are a good example. O’Leary cites a typical example drawn from the experience of “Shark Tank” contestants.
Or how about the way the Chinese government repeatedly steals intellectual property? To give just one example among thousands, several years ago on Shark Tank we had two impressive American entrepreneurs, Jennifer and Gifford Briggs, who invented the DrainWig. These nifty little devices catch hair and debris in bathtubs and showers, preventing drain blockages, and saving hotels thousands of dollars in maintenance fees. The Briggses went to all the trouble and expense of patenting their product.
Yet as soon as their revenue hit a $5 million trajectory for the domestic market, China swooped in with their cheap knockoffs, at 40 or 50 percent below the DrainWig price. What could they do in response? Sue the Chinese companies in a Chinese court? Of course not. You won’t get anywhere.
“Beijing has come to believe that now is the time to shift that system and the global balance of power to ensure China’s rise — and reject efforts to counter it,” wrote CNN’s China correspondent Simone McCarthy.
Related: Nike Forced to Apologize for ‘Never Again. Until Next Year’ Billboards at London Marathon
Advertisement
China is not alone in looking to shift the global balance of power. Most of the developing world is cheering China on, seeing Beijing as a counterweight to the U.S. and Western dominance. They also see WTO rules as rigged against them. They don’t mind that China is sticking it to the U.S. and the West because it upends the entire international trade regime and gives the best cheaters an advantage.
What can be done? Congress is working on a bill that might begin to right the ship and effectively punish China for its cheating.
But tariffs imposed through executive action can be reversed with the stroke of a pen. That’s why we need durable, bipartisan legislative solutions. Congress must act to provide businesses with the certainty they need to invest, expand, and compete. It’s time to lock in a trade policy that puts America first, now and for the long term.
That’s the goal of the Restoring Trade Fairness Act, bipartisan legislation I introduced with Rep. Tom Suozzi (D-NY). The bill ends China’s “most favored nation” status and creates a separate tariff column specifically for China because nations that don’t play by the rules shouldn’t enjoy the benefits of free trade. Similar to what is reportedly under consideration at the White House, my legislation establishes a clear, strategic framework: tariffs of up to 100% on critical sectors such as semiconductors and defense technology and 35% on less sensitive goods. The bill also ensures that revenue from these tariffs is reinvested in America by supporting farmers affected by retaliation, rebuilding industry, and strengthening our national defense, especially for a potential Taiwan scenario.
Advertisement
We’ve become far too comfortable as a nation with China and its cheating, thieving ways. High tariffs are only part of the answer. We’ve got to work with our partners in Europe and Asia, whose economies are threatened by China, to act in a concerted manner to tame Beijing and force it to play more fairly.
Help PJ Media continue to tell the truth about the Trump administration’s accomplishments as we continue to usher in the Golden Era of America. Join PJ Media VIP and use promo code FIGHT to get 60% off your membership.
