Tariffs invite retaliation thus ruining export markets in addition to raising prices and tipping small businesses into the failing side of thin margins.
The Coalition for a Prosperous America writes as if tariffs will miraculously cause the workers and resources necessary to perform all this new production to materialize out of thin air – a proposition that causes one to laugh as one does when reading The Onion.
To trust the U.S. government to impose tariffs at home as it acts as an enforcer for private companies that choose to operate abroad is a recipe for cronyism costumed as ethical law enforcement.
Let’s just try a mental experiment. Let’s regard the players on the team as some seem to regard themselves, exploited and underpaid. The same claims are made for many people around the world. The commonly proposed solution is the boycott.
Edward Stringham addresses the trade war and the mistaken notion of the trade deficit, speaking on BBC.
Let us at least learn from the real-time history and experiment in process right now. Let us look at the facts and compare them with the promised results.
Even if the reduction of trade barriers accounts for only a small part of the observed increase in growth, the cumulative gains from reform appear to be substantial.
Is Trump engaged in a high-stakes game to bring about freer trade with China, or just looking for a way to justify the tariffs that he claims have revived American manufacturing?
The trade war is heating up. Unfortunately, the Fed’s current framework will exacerbate the damage.
If a government manages to undervalue its currency in terms of foreign currencies, it subsidizes the consumption of foreigners who purchase its country’s exports. And while gains are reaped by those of its citizens who work to supply goods for export, currency undervaluation makes most of that country’s citizens poorer.
Because this is a tool the president can actually use — and because it bypasses the much more difficult task of having to persuade Congress of the merits of his ideas — Trump is using the tariff weapon more and more to address matters further and further removed from trade.
If we persist in reducing their brilliant progress to anything other than hard work being matched with freedom, we risk turning the biggest consumers of all things American against the United States. The economic consequences for the American people will be unfortunate.