Escalator Tariff

Nineteen years ago, when the depression provided tempting arguments for high tariffs, a far-thinking administration initiated the Reciprocal Trade Agreements. In 1953, although world trade is more urgent than ever before, it appears that Congress may replace this vital primer to Western economy with the special interests' dream--the Simpson Act. The Act would hand presidential control of trade agreements to the conservative U.S. Tariff Commission, while providing higher barriers for lead, zinc, and fuel oil. Opposed by Dulles, Eisenhower, and most of the Democrats, the Simpson Act would be the precurser of a dangerous high-tariff program.

Last year the United States exported $5 billion more of merchandise than it imported; economic aid had to fill this vacuum so Europe could buy raw materials from the United States rather than from Russia. If we raise tariffs the discrepancy will grow, and Americans will have to pay twice: in higher taxes and higher prices. Moreover, if we prevent other nations from selling their oil and metals to us, we will stall development of their natural resources--something that would cripple us in time of war.

The billions of dollars spent getting other nations on their economic feet would be wasted by a tariff policy which would cripple them. More important than the money the Simpson Act would cost would be the loss of confidence in European nations. High tariffs would be a curious object lesson in the benefits of "free enterprise."

By lowering tariffs gradually in many areas, on the other hand, we could permit foreign products to compete with American on nearly even terms, until our imports would equal our exports; thus, the need for U.S. economic aid would diminish. Few workers would lose their jobs, for those in more prosperous foreign plants could buy more merchandise, and even the workers who were displaced could work in the healthier export industry.

Even the United States Chamber of Commerce, a traditionally conservative organization representing 161,000 U.S. businessmen, has supported extension of the Reciprocal Trade Agreements Act. It recognizes that the United States is no longer a junior nation with fledgling industries; it is a creditor nation with responsibility to all the people here and abroad. Rather than setting higher tariffs and new import quotas and pumping more aid into Europe, Congress should give Eisenhower's proposed Study Commission a chance to formulate a sensible tariff policy. It should extend the Reciprocal Trade Agreements, following the International Business Machine slogan "THINK," rather than racing into costly, isolationist barriers to trade.