Trump’s tariff pause only delays inevitable disaster

[Akita Suggagaki]

https://thehill.com/opinion/international/5249952-trump-tariffs-economic-catastrophe/

Did anyone see this coming last November?

How bad does it have to get for Trump supporters to acknowledge the economic catastrophe he alone is creating??

 

[zippy2006]

How bad does it have to get for Trump supporters to acknowledge the economic catastrophe he alone is creating??

Here's a thread from three weeks ago that you seem to have missed.

 

[Laodicean60]

Why should I listen to someone's opinion? His opinion rates as high as your opinion on the matter, which isn't very high.

How bad does it have to get

Lol, it hasn't started yet, 15 days??? This is what happens when listening to opinions: it affects your delusional thinking.

 

[Akita Suggagaki]

Why should I listen to someone's opinion? His opinion rates as high as your opinion on the matter, which isn't very high.

Lol, it hasn't started yet, 15 days??? This is what happens when listening to opinions: it affects your delusional thinking.

Time will tell who is delusional.

 

[Laodicean60]

Time will tell who is delusional.

Wasn't talking about the future? I was talking about your comment today. "How bad does it have to get " And I'm not delusional, you guys forget what you read.

 

[Maria Billingsley]

https://thehill.com/opinion/international/5249952-trump-tariffs-economic-catastrophe/

Did anyone see this coming last November?

How bad does it have to get for Trump supporters to acknowledge the economic catastrophe he alone is creating??

While this pause is seemingly for negotiations, China , one of our biggest trade partners, is not taking part in it. This supply chain collapse will have a huge economic impact.

 

[Richard T]

Though it is just my opinion, I have read "Death to China" as well as books by Navarro and Ravi Batra that argue against the free trading system as we know it. So here is my list of purposes I see in current Trump policy and whther it is a disaster. I offer commentary on Trump policies and better paths that could be taken as well as some advantages.

Purposes of tariffs
(1) Raise revenue
Good except it is not the most efficient method, as there is a deadweight loss. Plus, it hurts the poor the most.
(2) Try to eliminate the US. trade deficit,
Excellent goal but it will reduce USA GDP overall. Notice how economists are already lowering growth expectations?
(3) Increase security by making stuff in the USA,
Excellent goal and totally legitimate for some products.
(4) Bring jobs back.
Great goal but export jobs will drop. Most companies too will wait, because the next President will reverse the course.
(5) Remove non-tariff barriers
Good, we need to punish those who abuse the trade relationship with illegitimate barriers.
(6) Create a system of trading that is dependent on Trump
This is bad for even Trump because it will open him to criticism. It is bad for the USA too as it means he has power over every industry, can cut deals to punish or help industries as he pleases.

So a disaster? For the most part yes. Getting away from Chinese dependence is a good thing, Russia too would be helpful but Trump is giving them a pass.

What could be better?
Target industries for future tax cuts or greater tariff protection for onshoring factories in the USA. Do this for drugs, steel, shipbuilding and all defense related industries. Do a cost/benefit analysis for the most amount of jobs onshored for the least amount of dollars. This picks the most jobs at the lowest cost.
Meanwhile, punish the enemies as historically the USA has done with high tariffs. No Normal trade relations for those deemed enemies. Punish in a reciprocal way all those with significant non tariff barriers. Use the WTO whenever possible.
Phase in tariffs to at most ten percent to reduce the trade deficit. Give industry a chance to react.
Be humble to our allies, just say things are tight and we desire a greater balance of trade. Treat all industries objectively and never try to leak or move the markets so much that insider trading can be lucrative for anyone.
Accept trade imbalances with the less developed nations that are USA allies. Historically, the USA has done this. Better to give a hand up than a hand out.

Advantages:
No cliff of tariffs or need for immediate negotiations.
No double-mindedness or flip-flopping
No favoritism
Less chance for insider trading
Less offensive to allies
Less interruptive to industry and markets
Helps growth in less developed nations