Comment by altacc
7 days ago
It's not really inconsistent as as far as I'm aware the US is the only country in the world with a universal baseline tariff on all imports. Other countries have tariffs that seek to protect certain industries and balance this with trade agreements that cover other goods or certain countries.
For example Japan wants to protect its farmers so has tariffs on rice. But that is not a simple tariff on all rice imports. There are various rules and a tariff free allowance. The largest importer of tariff free rice to Japan is the US.
I think there's a few things wrong with Trump's go to of tariffs as weapons:
- America seems to want total freedom to trade on its terms, not as partners. E.g. expecting countries to import American goods that do no satisfy customer demand or local laws.
- Trump's unpredictability will mean that companies will be hesitant to make large investments if they think the policy will change on a whim. US policy is largely controlled by a single, unpredictable, vindictive and fragile ego. That's not a good environment to build a stable and healthy company.
- The hyperbole such as calling international trade raping & pillaging. This is voluntary trade we're talking about.
- The main issue is that it's not solving the real problems of the average American. Globalization has big issues, it's kept some countries in poverty and contributed to declining living standards especially in western manufacturing. However it is just one factor amongst many that are causing hardship for small town America. A reversing of globalisation does not solve massive wealth inequality, it does not intrinsically solve low wages or abandoned factory towns. At the same time that Trump installs tariffs he's making it easier for the wealthy to concentrate ownership of assets, increase inequality, reduce employment laws and erase social protections. 14 billionaires with elite projection are not working to benefit the average American, they're working to benefit their own average.
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