First and foremost, North Carolina has an obligation to implement policies in the best interest of members of the state. Some of the policies that the state can perform to protect the interest of citizens include using, removing, or reducing quotas, tariffs, and duties among others. The NAFTA agreement between the United States, Canada, and Mexico moved most labor to Mexico and reduced salaries and wages to workers in the US due to low production. Consequently, the North Carolina and its citizens have been affected negatively in terms of both jobs and poor salaries.
In this case, there is high job loss in the state, and most NAFTA can be largely traced to contribute to unemployment because of the trade policies. Therefore, a 25% tariff on textiles and furniture items important to the state would be critical to the state. The state would benefit with an increase in the blue collar jobs. A better state will contribute to a better national economy as there will be a rise in GDP due to increased exports and reduction in the amounts of imports. The imposition of the tax would help in reducing unemployment and thus favor the states workers. However, the country’s congress would still be obligated with the task of approving all furniture and foreign textiles into the state as they control and regulate the international trade as provided by the constitution.
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Under the agreements by NAFTA, North Carolina will not be able to impose 25% tariff on goods imported from Mexico or Canada. Importantly, NAFTA does have a safety valve to protect nations against the negative effects of the policies for instance when it hurts workers or the economy. However, the state needs to consider the negative impacts the may result from a 25% tariff. First, trade plays a critical role in economic development. Moreover, the tariff will not reduce the excess supply of furniture and textiles in Canada and Mexico. With the rapid growth of globalization, trade relationships between the two the three countries are worth to consider. Therefore, North Carolina may cause potential trade wars between the two countries. For this reason, there should be lower rates for the tax.
Importantly, it will not be a problem for the state of North Carolina to get approval from the Congress as the 25% tariff is protective and meant to create more jobs by advancing furniture and textile manufacture. For this reason, therefore, the state is obligated to make members of the state venture into the furniture and textile industries by offering incentives. As a result, the state will be able to benefit with the approvals of the 25% tariff. There is, however, a probability that a lower tariff would be approved by the national government as 25% would be too high with NAFTA effect considerations. High tariffs will cause negative effects and may make it difficult for the state economy to stabilize. Thus, a lower proposal would be wise for the state of which they can increase further in future. Progressive increase in tariff is therefore important.
