A discussion about free trade versus tariffs raises all sort of choices, conflicts and conundrums. We’re not talking about forging steel, smelting aluminum or processing Trumpisms. Here, we do wine and beer, tourism, water exports, clean energy distribution, medical technology and don’t forget cannabis, among all our other potential imports and exports.
If Windsor was a sovereign nation, would we have an export surplus or would we have a trade deficit? More important: what does it matter?
Obviously, the Windsor economy is not isolated. On a daily basis we import most of our essential goods and services while we export our labor to Santa Rosa and beyond. In some seasons we sell our grapes, wines and a few other manufactured items to the world market.
But we often hear fears that Windsor’s economy is being changed by foreign forces. Some fret we may be too “top heavy” with non-local franchises and corporate chains. Others are concerned we may become too identified or dependent on the fast-emerging legal cannabis industry.
Should Windsor set up a series of trade protections and tariffs like Mr. Trump just did against foreign steel and aluminum?
This is a very interesting conversation about Windsor’s future. Our chamber of commerce (and this newspaper) seeks to promote shopping locally and sustaining or creating more local jobs.
But we also recognize that Windsor businesses can’t provide everything we need. Look in your weekly grocery cart. We might all starve if we only ate Windsor or even Sonoma County made products. (Not that we don’t always encourage as much support as possible for our local farmers and the Windsor Farmers’ Market.)
There’s no such thing as pure free trade outside of textbooks on the subject. Even as the American colonies revolted against the British Empire, the United States of America was created on a strong set of treaties, trade agreements and lots of tariffs. “America First,” is not a new rallying cry.
What Mr. Trump fails to accept is that tariffs are artificial constraints put on free trade as temporary fixes to correct trade imbalances, to subsidize growth or innovation or block unwanted foreign influences.
Should the Town of Windsor enact any of these? Tariffs is another word for taxes. We already tax visitors who spend the night in Windsor at our hotels and inns. Maybe we could put new tariffs on people who come from Santa Rosa or across the Golden Gate Bridge to sell their goods and export profits. Why wouldn’t we want to protect our small businesses and local producers? Do we want tariff toll gates on Highway 101?
Protectionism quickly takes on an ugly look when it hits close to home, doesn’t it? And that’s before other places start slapping counter-tariffs on all our Windsor exports.
We think the more productive economic conversation for Windsor businesses to have would be how to expand our involvement with our internal import-export trade partners.
Windsor should concentrate on what we do best. To grossly paraphrase Adam Smith from “The Wealth of Nations,” Windsor should do what it does best and import the rest.
What would that look like? How many of our locally-owned businesses are sustainable without visitor or imported dollars? The answer is: very, very few.
We think the leaders of the Windsor economy are doing a good job. The Town of Windsor, Old Downtown Windsor merchants and the chamber of commerce partner with the summer Town Green concerts, Windsor Days parade, Hot Air Balloon Festival and more. These all add to local vitality and profits.
Free trade versus tariffs is not a real choice in Windsor. But welcoming more visitor dollars to town and winning more “shop local” support from Windsor residents should be an ongoing topic of Windsor’s very own “trade talks.” Who wants to start?
