COLUMBUS, WI / ACCESS Newswire / March 14, 2025 / Michael Eisenga, renowned entrepreneur and economist, is speaking out about the growing concerns surrounding tariffs and their potential impact on the U.S. economy. While tariffs are often a point of contention in global trade discussions, Eisenga argues that their role as a negotiating tool is crucial for ensuring fairer trade and addressing the United States' unsustainable trade and fiscal deficits.
Today's University of Michigan Survey of Consumers indicates a significant drop in consumer sentiment, with a reading of 57.9, a 10.5% decline from February and below the Dow Jones consensus estimate. Economists have noted a decrease in consumer spending since the start of the year, with many attributing this to the uncertainty surrounding tariffs. In fact today's However, Eisenga points out that these tariffs have not yet fully taken effect, nor do we know the final details of what they will look like. At this point, tariffs are still part of the negotiation process, designed to level the playing field and address long-standing trade imbalances.
"The U.S. trade deficit in 2024 reached nearly $1 trillion, and our national deficit hit a record $1.8 trillion," said Eisenga. "These numbers are simply not sustainable. The tariffs being imposed, particularly on goods from countries like China and the European Union, are part of a broader strategy to bring fairer trade policies to the U.S., which is desperately needed."
Eisenga also pointed out that tariffs on U.S. goods have been disproportionately high in many regions. The EU, for instance, has raised tariffs on U.S. beef, poultry, and motorcycles, while China has imposed significant tariffs on products like aluminum and cars. In nearly every case, U.S. tariffs on these countries' goods are lower than what the U.S. faces in return, putting American businesses at a disadvantage.
"China, in particular, has not been a fair-trading partner," Eisenga continued. "Not only do they impose high tariffs on U.S. exports, but they also fail to protect U.S. companies' intellectual property. On top of that, China's increasingly aggressive behavior on the global stage, aligning with authoritarian governments and threatening neighbors like Taiwan, makes it all the more critical for the U.S. to reevaluate its economic and geopolitical relationship with China."
Eisenga believes that the current focus on tariffs as an economic concern is misplaced. While there may be short-term inflationary pressures, he points out that during President Trump's first administration, the U.S. saw inflation remain at a relatively low 1.4% despite increased tariffs. The added tariffs also contributed to bringing many manufacturing jobs back to the U.S. - a trend that Eisenga sees as beneficial for long-term economic growth.
"It's important to separate fact from fear-mongering," Eisenga said. "The media has been quick to warn of runaway inflation and economic disaster, but the reality is more nuanced. The economic challenges we're facing are not a direct result of tariffs but are the outcome of long-term structural issues that have been ignored for far too long."
The entrepreneur also emphasized the importance of using tariffs strategically, especially in negotiations with other nations like the EU, Mexico, and Canada. By instituting reciprocal tariffs, the U.S. can press for lower tariffs on American exports, potentially unlocking new market opportunities that have been stifled by high tariffs in those countries.
"We need to move beyond our reliance on China for outsourced manufacturing," Eisenga said. "The long-term goal should be to diversify our supply chains, reduce dependency on countries with questionable trade practices, and find new partners that align with our interests both economically and geopolitically."
Eisenga believes that while the short-term impact of tariffs may bring some challenges, in the long run, they will help create a more sustainable and prosperous U.S. economy. By reducing trade imbalances, lowering government deficits, and fostering fairer trade practices, tariffs are a vital part of strengthening the country's economic future.
About Michael Eisenga:
Michael Eisenga is a successful entrepreneur and thought leader known for his work in driving economic growth, addressing fiscal policy issues, and advocating for fair trade practices. With years of experience in various sectors, including Finance and Economics, Eisenga has gained recognition for his commitment to innovation, strategic thinking, and leadership in the business world.
Contact Information:
Michael S. Eisenga
CEO, First American Properties
meisenga@firstamericanusa.com
SOURCE: Michael Eisenga
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