​Trade works. Tariffs don't.

These are wise words from the US Chamber of Commerce. Remember the foundation of our country – the Free Enterprise system. Recent threats from President Trump to impose tariffs on our neighbor and leading trade partner were not in the best interest of commerce. I, along with countless others, breathed a huge sigh of relief when Trump indefinitely postponed the 5% tariff slated to be imposed on Mexican imports June 10.

I followed research the US Chamber complied on the proposed Mexican tariffs. Assuming the lowest rate of 5%, California alone would experience a $2.2 trillion impact. Those costs would be passed on to consumers. With the price of goods escalated, sales taxes would also increase sharply. For instance, if you assume that $1 trillion of the $2.2 trillion in tariffs was on taxable goods (such as autos) and you apply a modest average sales tax rate of 8%, that would generate an additional $800 million in tax revenue paid by consumers!! Since most of us won't be getting pay increases to cover the cost of tariffs, the end result would be consumers purchasing fewer goods.

Even though we have currently averted the tariffs on Mexico's goods, the trade wars with China and the EU are ongoing. The US Chamber has gathered the impact numbers for those trading "partners" as well. These numbers are projected impacts to California only, not the entire US.

Total Exports to China Threatened by New Tariffs: $13,088,228,667

1. Motor Vehicles with Only Electric Motor: $1,374,792,617
2. Phones for Cellular Networks or For Other Wireless Network: $659,130,638
3. Passenger Vehicles, Over 3000 cc: $483,895,522

Total Exports to EU Threatened by New Tariffs: $383,406,339

1. Eye Make-up Preparations: $77,145,413
2. Nuts of Iron or Steel: $55,667,339
3. Women's or Girls' Trousers Etc Not Knit, Cotton: $48,252,725

In addition, California has 4,869,200 jobs supported by trade.

The Great Recession a decade ago clearly defined our world being globally connected and intertwined. We should be supporting the prosperity of our trading partners, not trying conquer them.