by Joe Nobody
“The nation’s gross domestic product is taking a severe hit right now, Madam President, and it’s more than just the missing output from Texas that’s causing the downturn. Several major corporations are delaying expansion here in order to beef up their infrastructure there. As an example, the increased price of steel is putting a damper on everything from automobile sales to new construction. As a matter of fact, steel production is one of the few positives in our economic forecast.”
Aaron shook his head in disgust, “How wonderful. One of our dirtiest industries is booming. This doesn’t fit well with your global warming agenda, ma’am.”
Heidi sighed, “The treasury needs revenue. We need to keep the environmental left in our camp. Seems simple enough – put an export tariff on steel.”
The Secretary of Commerce, silent until now, cleared his throat. “Ma’am, trade tariffs are always a dangerous move. Retributions can be damaging, and the unanticipated fallout has historically done more harm than good.”
President Clifton shrugged, looking around the room. “Okay, fair enough. What could Texas possibly do to us? Tax the export of BBQ sauce?”
Everyone chuckled politely at the joke. The Secretary of Energy waited, hoping someone else would speak up first. When they didn’t, he cleared his throat and said, “Oil, ma’am. More specifically, refined petroleum products. A huge percentage of our national pipelines start in Texas at their refineries. Fuel oil, natural gas, gasoline, diesel… it all starts along the Gulf Coast and heads north.”
“So you believe our tariff on steel would be countered with one on oil? Would they do that?”
“Yes, ma’am, I believe they would. I’ve worked with those people down there for over 30 years, and I am reasonably sure they wouldn’t take kindly to trade restrictions.”
Again, Aaron spoke up from his seat next to the president. “And what would be the impact of their counter-tariff?”
The SecEng spread his hands, the gesture indicating the answer was obvious. “Prices would rise.”
Heidi nodded, a sly smile forming at the edge of her mouth. “And if prices rise, then consumption decreases – am I correct?”
“Yes, ma’am, but…”
The president interrupted the response, “There are many benefits to reduced fossil fuel consumption, and we all know that. Our carbon footprint goes down; alternative energy sources get a boost, and we keep our politically active, green friends working with our party. If the treasury receives a revenue gain as well, I don’t see the downside here.”
The typical arguments were floated, but it was clear to all that the Chief Executive had made up her mind.
Four days later, the White House announced a still tariff on all steel being exported from the United States.
The following morning, Austin countered, placing its own surcharge on all refined petroleum products shipped to the United States.
The Houston Post ran the headline, “The Tariff Wars Have Begun.”