Tag: trump tariffs
'Enjoy Your Cheap Avocados': Trump Vows Big Tariffs On Mexico And Canada

'Enjoy Your Cheap Avocados': Trump Vows Big Tariffs On Mexico And Canada

President-elect Donald Trump announced via social media on Monday that he will enforce tariffs on goods imported from Canada, Mexico, and China.

"On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders," the MAGA leader wrote via his Truth Social website. "This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country! Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!"

He continued, "I have had many talks with China about the massive amounts of drugs, in particular Fentanyl, being sent into the United States - But to no avail. Representatives of China told me that they would institute their maximum penalty, that of death, for any drug dealers caught doing this but, unfortunately, they never followed through, and drugs are pouring into our Country, mostly through Mexico, at levels never seen before. Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America. Thank you for your attention to this matter."

Several political and economic experts slammed the president-elect's announcement.

Adam Isacson replied: "Using the same logic, Mexico and Canada could impose tariffs on US goods until we get serious about: - Reducing US demand for illicit drugs - Stopping cross-border trafficking of guns easily purchased in US shops - Curtailing money-laundering in US banks, real estate, etc."

Rep. Don Beyer (D-VA) said: "Donald Trump’s first act as president will be to intentionally *raise* prices for the American people."

Economist and University of Los Angeles law professor Kimberly Clausing commented: "Policy by tweet is something we once again brace for. But the uncertainty and chaos are just part of the economic damage that these policies bring. Canada and Mexico are our largest trading partners, and these huge tariffs will raise prices for consumers."

Boston College political science assistant professor Masha Krupenkin replied: "Enjoy your cheap avocados and electronics while you can."


If They're 'Pro-Life,' Why Did Republicans Vote No On Baby Formula?

If They're 'Pro-Life,' Why Did Republicans Vote No On Baby Formula?

In the long era of anti-abortion demagoguery, “babies” have been the enduring symbol of Republican caring. They want to defend the rights of babies as persons even before they are born. Or, as former Congressman Barney Frank quipped, “From their perspective, life begins at conception and ends at birth.”

And yet Congressional Republicans proved beyond doubt this week that they regard living, breathing babies solely as political props, not real human beings with actual needs. True to compassionless form, nearly every Republican in the House voted no when the chance came to feed infants, living ones.

Did you get that latest “pro-life” hypocrisy? The Republicans almost unanimously opposed a bill to increase the supply of infant formula during a crisis—192 Republicans against, with only 12 breaking ranks. What could make them behave so irresponsibly and even cruelly? Because they always want the problem and never want the solution.

What this midterm election season is teaching us about the Republican Party is a political lesson we ought to have learned years ago. When a real problem arises, like soaring inflation or supply chain disruptions, they propose nothing and oppose everything. They just want to exploit whatever the problem is for political profit—and often for the financial profit of their dark money benefactors.

By voting against an emergency Biden administration bill to alleviate the nationwide shortage of baby formula, the House Republicans again proved Barney Frank’s adage that their party is “pro-life” until the moment of birth. After that, it’s every baby for herself. The Republicans’ complaint that the White House is “throwing money at the problem” sounds especially absurd because the bill’s cost to solve a very serious problem is a mere $28 million, literally a rounding error in the Food and Drug Administration budget, let alone overall federal spending.

Given the usual glacial pace of Washington, the White House has in fact moved with blinding speed to solve the shortage, slashing away barriers to safely import formula from abroad and reopen the Abbott Labs factory whose closure from contamination had sharply limited domestic supplies.

Acting decisively, President Joe Biden has invoked the Defense Production Act to corral raw materials for the formula manufacturers and ordered the Pentagon to airlift specialty formulas from overseas that are urgently needed by several thousand families. The result, according to White House data, is that during the past four weeks more formula has been produced than during the same period preceding the Abbott formula recall that caused shortages in many states.

Instead of embracing solutions, of course, the Republicans are constantly searching for scapegoats, with particular attention to inflaming ethnic and racial hostility. Recall that the baby-formula debate began with Republican leaders attacking the White House over pallets of formula sent to the southern border, where infants in migrant families detained by authorities also needed to be fed.

The freak show contingent of the GOP has set the tone. Led by Reps. Marjorie Taylor Greene and Matt Gaetz, they accused Democrats of feeding migrant babies instead of native-born babies, as if the government policy should allow those other infants to starve to death. See, that’s how much these “replacement theory” racists value and love babies. “Pro-life” apparently means let living babies die.

And this week, following that compassionate “pro-life” agenda, those same Republican extremists voted against expanding the Women, Infants and Children program to allow lower income families to buy more varieties of formula. Instead, they seized on the chance to blame poor families for the shortage too. There were only nine of those monstrous members in the GOP caucus, but they’re the party vanguard.

If the Democrats were more like their partisan adversaries – that is, more concerned with pointing fingers than nourishing children – they might well have seized the opportunity to blame the Trump administration for the formula shortfall. Pursuing his futile and destructive trade war with China, Trump’s trade advisers wrote provisions into the US-Mexico-Canada Act that hindered exports of baby formula from Canada. To thwart a Chinese investment in an Ontario, Canada dairy plant, they made it virtually impossible to bring formula over the northern border. American infants are now going hungry thanks to that typically counter-productive and thoughtless action.

The Biden administration and Democrats in Congress have scarcely mentioned this Trumpian predicate to the current national predicament. They’re too busy figuring out how to get actual bottles of formula into the mouths of real infants that need them. They’re too concerned with solving the problem. Meanwhile, the Republicans chortle that they have manipulated public opinion into believing that it was all Biden’s fault at the same time they attempt to sabotage the solution. It’s their heartless, cynical, and absurdly predictable game. They are not crying about spilt milk.

Americans need to understand that if they vote for Republicans, real live children are going to suffer. Just look no farther than those 192 House Republicans who voted against baby formula.

How Did Trump Flub China Policy? Let's Count The Ways

How Did Trump Flub China Policy? Let's Count The Ways

Was Trump right about China? No. Let's count the ways.

One: Trump's entire conception of the China challenge was fallacious. Trump thought the problem China posed was that it sold us too many things, resulting in a bilateral "trade deficit," which meant that China was "winning" and we were "losing."

While it is true that some industries lost jobs to Chinese competition over the past two decades, it is also true that other industries gained jobs due to trade with China and other countries, and lower-income consumers were particularly enriched by the abundance of inexpensive goods China and others supplied. So were manufacturers who were able to use less expensive Chinese imports. One in five American jobs is devoted to exports, which often rely on imported components.

Two: Trump focused exclusively on one figure, the trade deficit. He wailed that the trade deficit with China amounted to "rape" and promised that under his "America First" leadership, we would "fight for America's blue-collar workers." Economists nearly unanimously consider the trade deficit to be a useless statistic for many reasons, including: 1) a trade deficit reflects the fact that Americans have lots of money to spend; 2) it fails to consider that when China sells us goods and we pay in dollars, those dollars come back to us in the form of capital investment; 3) it's super complicated to figure out bilateral balances of trade because so much trade in the 21st century involves multiple countries; and 4) trade deficits are associated with economic growth, not decline.Under his leadership, the U.S. trade deficit was the largest in a decade — a failure, by Trump's lights.

The data are also now in on Trump's own "momentous" 2020 trade deal with China. As part of his strategy to get this supposedly history-making deal, Trump had imposed tariffs (taxes) on $200 billion worth of Chinese imports. China retaliated with tariffs on $110 billion in American products, particularly targeting farmers. Trump incessantly claimed that China was paying those tariffs, but as a new report for the Peterson Institute for International Economics underlines, that was untrue. Trump's import taxes were paid entirely by American businesses and consumers. This brought the Treasury $66 billion, almost exactly the amount Trump paid out to U.S. farmers to compensate them for lost exports. Had the trade war never started, the PIIE estimates, U.S. exports to China would have been nearly 20 percent higher in 2020.

The tit-for-tat tariffs continued throughout the Trump presidency until the great 2020 trade deal negotiated with his "very, very good friend Xi Jinping." The deal, Trump blustered, was "incredible ... one of the largest deals ever."

The actual results? It was a flop. Trump said the Chinese government would remove its tariffs. They didn't. Trump said they would buy $200 billion in U.S.-manufactured goods. They purchased only a little more than half of that, which did not equal U.S. exports to China from before the trade war.

Three: Trump should have seized upon the golden opportunity available at the start of his term to enhance U.S. exports and rein in China — the Trans-Pacific Partnership Agreement. Instead, one of Trump's first acts was to withdraw from the TPP. Sadly, the Democratic Party has also abandoned free trade.

None of this is to say that we shouldn't negotiate with China to curb their unfair trade practices, only that the ideal way to do so is with allies who share our values. In any case, the emphasis on trade misses the point: China is a bad international actor in many ways, and frankly, when you consider Hong Kong and Taiwan and the export of surveillance technology to brutal dictatorships and the Uyghurs and the alliance with Russia, well, trade is pretty far down on the list of sins.

US-China Trade negotiations during the Trump administration.

Trump’s Trade Policy Failed — And Biden Should Abandon It

When he became president, Joe Biden summarily reversed his predecessor's policies on a range of issues, including climate change, immigration, taxes, social welfare and police reform. But on international trade, it's almost like Donald Trump never left.

Trump had a primitive view of this issue. Good, in his view, were exports, trade surpluses, tariffs and trade wars. Bad were imports, trade deficits and multilateral trade agreements.

He saw global commerce as a zero-sum game, in which anything that benefited another country must come at our expense, and vice versa. He was unable to grasp that exchanges of goods and services across national borders could — and do — make people in every nation better off.

So, Trump slapped tariffs on steel, aluminum, solar panels and washing machines. He put tariffs on some $360 billion worth of Chinese apparel, appliances, machinery, shoes and more. He threatened to slap import taxes on cars made abroad.

He pulled out of the Trans-Pacific Partnership, a free-trade accord with 11 other countries. He ended talks on the Transatlantic Trade and Investment Partnership, a major effort to lower trade barriers between the U.S. and the European Union. He nullified the World Trade Organization, which resolves trade disputes, by blocking the appointment of new members to the body that hears those cases.

But his efforts accomplished nothing worthwhile. They raised prices to American consumers while punishing American companies that use steel and aluminum. What the Tax Foundation described as "one of the largest tax increases in decades" now costs the typical American family more than $1,200 a year.

The tariffs failed to create jobs in the steel industry, which shrank even before the pandemic, and produced only a tiny boost in aluminum jobs. But a study by economists at the consulting firm The Trade Partnership estimated they would eliminate some 145,000 jobs in other sectors.

Our trading partners retaliated against U.S. companies with tariffs of their own. American farmers were hit so hard that Trump had to come up with $23 billion to cushion the blow.

Nor did his strategy reduce our trade deficits. The overall U.S. trade deficit last year was the biggest since 2008. China has not given up the practices Trump was trying to stop.

In March, Gallup found that 63 percent of Americans — including 79 percent of Democrats — have a positive view of trade, with only 32 percent disagreeing. Biden was part of the Obama administration, which negotiated the Pacific trade deal and pressed hard to reach an agreement with the EU. But the Democratic Party has somehow fallen under the sway of protectionists, and he's shown little interest in resisting.

He's left most of Trump's tariffs in place, and his trade representative, Katherine Tai, said removing them would be a bad idea. She vowed a "worker-centric" trade policy focused on raising wages, omitting such goals as expanding commerce and fostering competition. Her stance fits the prevailing progressive superstition that commerce with the world makes us poorer.

That view is bad economics and bad history. In her 2019 book Open: The Progressive Case for Free Trade, Immigration and Global Capital, Reed College economist Kimberly Clausing argues that tariffs "harm consumers, with particularly harmful effects for low- and middle-income workers," while creating disruptions that eliminate jobs in affected industries. Nearly nine out of ten losses in manufacturing jobs, she notes, are the result of technological advances, not international competition.

Trump portrayed China as a ruthless predator that exploits global rules for competitive advantage. But that's the very reason that he should have kept the U.S. in the Trans-Pacific Partnership, which was designed to facilitate trade among the Pacific Rim countries — not including China.

It would have put strong pressure on Beijing to reform its trade practices to gain admission. But with the TPP dead at Trump's hands, 15 Asian countries opted for a different trade agreement. In this accord, China is in, and the U.S. is out.

Trump's sabotage of the WTO's appellate body was another own goal. From 2002 through 2018, it had heard 23 cases involving disputes between the U.S. and China — with the U.S. winning 20 and China winning zero (with three pending). The U.S. should be pushing the WTO to crack down on China's abuses, not kneecapping the only system for addressing them.

As a rule, any policy Trump embraced is one that ought to be abandoned. Trade is not the exception.

Steve Chapman blogs at http://www.chicagotribune.com/news/opinion/chapman. Follow him on Twitter @SteveChapman13 or at https://www.facebook.com/stevechapman13. To find out more about Steve Chapman and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

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