NZ has recently turned back 4 shipments of imported cars, at various times over the last month, from Japan, because there were hundreds of Stink bugs on them. There's all sorts of trade wars going on internationally, and in my opinion the Japanese are deliberately sending these shipments full of stink bugs to NZ so as to decimate our four billion dollar export industry of fruit and veges.
Cutbacks on regulations and MAF could also put your export industry at risk. Border control and inspecting all imports into your nation are important as nations, such as Japan, could deliberately send in diseases and bugs that ruin your export industry. Food for thought!
Regulatory controls need strengthening - not weakening.
NAFTA was a carefully negotiated agreement, based on its predecessor the Canada-US Free Trade agreement, which itself was based on the Canada-US Autopact negotiated in the 1960s. Canada and the US have enjoyed a progressive integration of trade stretching over 60 years. Had both sides not judged it highly successful it would not have survived three iterations of very tough negotiations over decades. What's going on now is the direct result of blundering idiocy, prejudice, ignorance and crass political opportunism; it is open and shut protectionism and a breach of NAFTA. It has nothing to do with national security. Now that Trump has opened his hand it's clear that he's using steel and aluminum to bludgeon through all the poison pills his incompetent negotiators have been trying to impose over the past seven sessions of negotiations. There's no evidence that the NAFTA talks are going anywhere. Canada entered this needless process in the kind of good faith that is absent on the other side. Trump Ross Lighthizer and Navarro need to be careful. US international economic positioning is highly leveraged and exposed and a combination of European, Canadian, Japanese and Chinese retaliatory measures could knock US industries and financial equilibrium into a tailspin. Trump no longer has the good will or credibility to further test the patience and forbearance of what are rapidly becoming former allies. Be careful.
Interesting that not a single Trump-hater has argued that other countries are not dumping their goods on us and requiring tariffs on our goods that they import.
As with environmentalism, we are generally separated between the Abolitionists vs the Utilitarians. Use of the world's resources should be a utilitarian as opposed to an abolitionist approach to hazardous substances used or created by technology. It is irrational that a "Natural State" exists with intrinsic rights to impede the activities of man, and hysterical fears of environmental poisons, disproportionate to the threat and dismissive of their associated benefits.
We have allowed the Globalists to abolish industries and jobs here in the U.S. with the flip retort millions can find something else to do with their time whilst they are provided cheap goods.
President Trump is taking a more utilitarian approach by protecting jobs as we transition. However, one thing he is not going to allow is the Globalists to move offshore to produce a product at a fraction of the cost only to dump it right back into our markets to reap the windfall.
That does not serve the general interest.
2
Things are really messed up when we have NYT readers and editors defend business practice, offshoring, and imports, to exploit workers enjoying no or low minimum wage, no pension or no welfare, low labour standards, low healthcare and education standards. The big truth is America and the West’s middle class was not built on free trade, it was built on labor, education, and welfare standards that raised incomes and encourage social mobility.
2
'If you don't have steel, you don't have a country!'
Sounds like the US should nationalize the steel industry . . .
He needed to get minds off the Florida massacre. And gun control.
NRA probably told him how to do it.
Now he wants to massacre the US economy--and that of all US allies.
1
Globalism has been more of a curse than a blessing. Ask anyone who used to work in a well paid blue collar job, and even a well paid white collar job, both have been outsourced to 3rd world countries at alarming rates.
Trade works best amongst equals, i.e., 1. Canada and the US; or 2. Vietnam and Thailand; but not 3. the US and China.
Trump's tariffs are an attempt to correct this imbalance. More are actually needed - there is still a great imbalance in many other industries that needs to be corrected.
3
Philly,
Neither Canada nor the United States makes cars. These always seem to be manufactured by car companies. Thus we can see that you have a taste for nonsense.
I think we are agreed that many capable American workers are underpaid, their skills underutilized. Is this any wonder in a country which specializes in going off to war and living off the capital of past investment? The simple proposition of maintaining past achievements -- roads, dams, bridges, parks -- while manufacturing the future -- clean power, sustainable farms -- might be wise steps.
The cure for inequality is a more equitable, not a more poverty-stricken, economy. The latter is what you are calling for, and that is the major nonsense in what you write.
4
Trump appears to use whatever policy change is necessary to divert Americans’ attention from his latest scandal or ill informed decision, no matter the consequence. The power you confer in an unstable president with inadequate checks and balances from an also inept congress is mind numbing.
His use of trade in the latest debacle is already having an adverse effect on my buying decisions from travel to major purchases resulting in my not vacationing in the U.S. to buying cars made in Canada, Europe or Asia.
I have been planning to purchase a sailboat. Beneteau is manufactured in both France and the U.S., but my decision will depend on whether France will sell in Canada instead of me having to buy an American made boat. Improving the likelihood of that decision is the Canada-European Union Comprehensive Economic and Trade Agreement, that treaty that will remove tariffs between Canada and Europe. The sailboat will cost $700,000 Canadian. As our dollar declines due Trump’s ill-advised antics the cost rises.
Why am I so unsettled by Trump’s latest diversion; the U.S. has an overall POSITIVE balance of payments with Canada when you consider profits flowing back to American owned companies and trade is very balanced between Canada and the U.S. under NAFTA. Trump’s sledgehammer approach is likely to have far longer and more impactful negative outcomes than most Americans understand as you have become an untrustworthy Partner.
3
If you don't like tariffs....great, come to us with something better. But you need only look at our dismal workforce participation rate, our enormous trade deficit, and the ever-increasing amounts of time and money it takes to get to the point where someone can find an entry-level job (college degree required), to know that the status quo isn't working. And, frankly, hasn't worked over the last several administrations of both Republicans and Democrats.
Half a century ago, you could walk out of high school and into the factory. With little or no specialized training - and basically none beyond what was provided to you on the job - you could support your family. The age at first marriage, age at first child, and age at home ownership were all much lower than they are today. How bad to things have to get to realize they aren't working?
4
Many commentators are blinded by their abhorrence of all things Trump - putting the hysteria to one side.. the EU is a protectionist block, why else is the UK anxious to keep access after Brexit......no free trade there Mr Macron......China, hyper protectionist, and will add a insult to injury by insisting US companies transfer their Intellectual property just to be a slither of the market. Korea, Thailand, Vietnam, Indonesia, etc the largest markets of Asia - free trade? Not if you actually try. The Trade Cold War has been undeclared for 30 years and now some are finally waking up. Go Trump go harder..
2
The U.S. steel industry has been on a slide for decades. Not because of cheap foreign products but because they were more interested in profits than investing and updating their infrastructure to be competitive. So instead, they are trying to compete with old, outdated machinery and technology while their pockets are bulging with cash! So comes the cry, "Help us Donald!"
2
I believe that just for the sake of national security, we need a manufacturing presence in key industries. We need to have capacity that makes electrical grid equipment, key medications and vaccines, communications equipment, microchips, cars, steel - just to name a few.
The fact that it can be made cheaper elsewhere deosn't protects us if there is global disruption in supply. So I believe in a level of America First.
But I believe we choose those industries that are a matter of national security and fund them out of our military budget, as part of our national protection, and say, let corn subsidies go for a while. We know how to produce corn in a pinch.
What we don't do is start a trade war over the manufacture of a product in which we fail in terms of cost of production because we don't have the capital investment, our labor is very expensive, and the vast majority of the raw resource to make the product is actually located in Australia and China which explains Chinese dominance.
We can do a lot to spur industry, And we should. But as usual, the simplistic solution is a stupid solution.
2
The EU is considering tariffs on bourbon and Harley-Davidsons. Is it a coincidence that these products are from states that voted for Trump? If EU retaliations is done with thought, they could easily make a very clear point by targeting products from states and industries that back Trump. To make it even more painful, they could more specifically target industries in steel/aluminum producing states. That would hit Trump’s constituents directly. But if the EU attacks industries that hurt anti-Trump states like California or New York, that would just be icing on the cake for Trump and his supporters, an unintended gift to embolden them further. Trump’s supporters in steel states simply have no idea just how painful EU retaliation could be to them.
2
Would like to have a look Trump's transcripts, but assuming he has something to hide, like with his taxes, that will be kept secret.
Yeah, because sitting around for another 26 years and doing nothing has been working so well for the American people. I applaud the President for this move. Now, fix NAFTA. It's not been working out for either the American people or the Mexican people. Actually, since NAFTA the only thing that managed to become wildly successful is the Mexican drug trade.
2
There has been much negative comment regarding President Trump's application of a tariff on steel and aluminum. First, Secretary Ross is wrong to use the penny of increased cost on a can of soup as an example because the primary values of the can of soup are the soup and the distribution. Second, President Trump is correct that a trade war today is easy to win because the reality today is totally different than the historical past, that is, the United States has no tariffs and our trading partners do have tariffs. Our trading partners also have historically large trading surpluses. The problem is that what is actually needed is a 50% tariff on all Chinese goods and services so that China removes its tariffs on American goods and services. The loss of 70,000 US factories since NAFTA is empirically conclusory that something MUST be done to redress the harm to the American worker.
5
Finally! Someone who understands the entire thing. I heard Ross's statement and he didn't say "...a penny..." He said "... fraction of a penny for the can..." Most Americans today have no idea how steel is made, what it's made more, and that there are different types of steel requiring different manufacturing processes.
They are so against Donald Trump that there's nothing he can do to change their minds. That's the sad part. We are in an unprecedented time of economic opportunity. Smart Americans will see that and figure out how they can capitalize on it for themselves. Whether it's getting another $2400 back from the tax cuts or a CEO figuring out where to invest because of the uptick in interest rates, opportunity exists.
It's all about who can make what we want cheaper. I can see the consumers of raw aluminum and steel going to the source to make their product. Who wins then?
1
Another person without a clue about the entire thing. China doesn't need our stuff, and if you don't want their cheap stuff, which is Walmart's chief supplier, then there are others that do. The only people a trade war will hurt is the consumer.
1
"A Bold Move..." - going back 15 years or so, that was one of the GOP favorite words during the time of the Bushies. It became a signifier of "stenography" as opposed to "reporting".
Can we Times readers be confidently looking forward to increased usage of "shock and awe" next?
2
Yes, Dubya's "bold moves". Don't forget that he imposed a 300% tariff on Roquefort out of spite that the French had opposed the war in Iraq, and this country really stuck it to the French by renaming French fires "freedom fries".
Now a self declared billionaire, one who obviously has not clue how the economy works to begin with - and who went bankrupt several times - is starting be biggest trade war in modern history.
2
Is there anything left on this God-forsaken planet for Mr. Trump to destroy, or planning to destroy? I think its time he seeks professional help with his questionable mindset and actions. He's destroying the U.S.
4
Huh, who would have thought. How could a populist platform ever lead to a potential trade war?
And, to all of you Bernouts, just take a little stroll down memory lane before heading out to caucus/vote in your primaries. I mean, doesn’t this feel eerily familiar?
Donald Trump: Putting the "bully" back in Bully Pulpit.
1
Address circumvention of trade measures that comply with WTO rules with new WTO compliant trade measures.
Who would have thought that trade could be so complicated???
Why give an asinine move credibility by calling it "bold". It's simply another of Trump's ill though out, base mollifying blunder.
2
So, to the multitudinous deficiencies of character, temperament and intellect rendering Trump glaringly unfit for the position he occupies, we can add 'economic illiteracy'... Great!
Its painfully obvious that the root of White House chaos is our incompetent president: Trump’s professional reputation in the Washington community is historically awful. Members of his own party routinely dismiss his ideas and joke about his ineptness. The White House staff consistently leaks unflattering portraits of him. Virtually everyone believes he needs to be extensively managed... Now, Trump impulsively & single-handedly erased untold millions in stock market-value... because he was feeling a bit tetchy?
Never have we seen such chaos, but what's even more terrifying is the ~36% of the electorate that is content to stay the course with stupid.
3
Trump will probably send America and the world into a depression with his ignorance while Republicans sit silent.
2
Global warming question: do you all think it’s sane to ship something as dainty as steel 9,000 miles on freighters? Isn’t free trade so very logical?
P. S. Ocean going freighters produce 20% of the greenhouse gases that we don’t like. A good reason to make things closer to home. The free trade fanatics never talk about that.
3
Well you need to learn about various types of steel before you draw conclusions. Not all steel is the same and not all types of steel is produced in one place.
trump's answer to removing a splinter is to cut off the hand.
4
We all depend on stability. So many people that I meet are anxious because of Trump's regime, his chaos. We don't know from hour to hour what he will say or do.
The ultimate irrational move will be to fire nuclear weapons because he listened to a Fox News comment.
1
So consider that this is Trump's idea of a good idea.
This cannot be good PR for Wharton.
2
China is the fifth largest importer of steel to the US, behind Canada, South Korea, Germany and Mexico. This plan was suicidal for American workers, most of whom work for companies that consume steel rather than produce it.
1
You do realize this is not a feudal state and Trump is not your King, right?
There's no need to persist in labelling obvious pathoilogy as "bold moves".
Yet you do persist. 'Bold" has become your go to cover word for infantile, undisciplined, dangerous and dangerously unregulated behavior.
One is left to wonder if this superfluous currying of journalsitic favor from a man pathologically incapable of returning even the barest civility is born of some deeper motive on your part.
History proves this WILL backfire, not ‘could’ backfire. The NYT should take a clear stand here. One of the few truly proven things in microeconomics is that tariffs ALWAYS backfire. Apparently Trump was asleep during 5e economics classes at Wharton.
1
Apparently Trump’s steel tariffs are a back door way to push revenue to Russian’s who have bought up USA steel mill interests. When will the Congress stand up for the Constitution and the American people?
The US sends billions more dollars's worth of steel to Canada than the other way around. Why start a trade war ?
1
Another thoughtless move by D J Trump. Since he knows nothing about the world except what he can exact form them he knows nothing about how much we stand to lose with this ridiculous behavior...it has already caused a Swedish Company to spend less in the US on the company which employs many US workers, also the Stock Market has reacted the way it should based on this...it has gone down. The only winner so far is Carl Icahn from his insider hook-up with D J Trump.
Ironic. For centuries it has been the first world (colonial powers) that were uplifting themselves at the expense of the third world (colonies).
Turnabout is fair play
1
Shallow impulsive decisions driven by emotional needs and ignorance. What could possibly go wrong? "Trade wars are easy to win"?! Tell that to the people thrown out of work, the businesses harmed by the unintended consequences. And given Trumps demonstrated depth of thinking, ALL the consequences are unconsidered, unintended consequences. Is it time for Republicans to turn on Trump yet?
1
There is only one reason for Trump's sudden announcement of tariffs on steel:
PENNSYLVANIA.
Specifically, the tightening Congressional race in a Southwestern Pennsylvania district, one that used to be a solid-red GOP seat.
In a desperate last-minute attempt to win over Steel Country voters, Trump is doing what he always does: Making wild promises that he won't keep and bad deals that he can't pay for... Because Conor Lamb, the Democratic candidate, is poised to deliver the latest humiliating blow to Trump at the polls.
When the House Republicans finally see that The Emperor Trump is actually naked and can't help their reelection campaigns, they will miraculously rediscover their patriotic duty and Trump's time in the White House will be up.
5
I'm reminded of that song from the 60's, "...wishing and hoping and thinking and praying..." You all need to get a grip and get a life for the next 7 years. The election is over. Trump isn't going anywhere until his legally-elected term is over.
1
Providing more jobs and raising wages are just fine, but tariffs will only serve to raise the prices of goods and services which are being protected domestically. The balance is provided if wages are high enough to withstand the price increases. Wages for the middle class are not even there now, so if prices for certain durable goods rise, for which steel and aluminium are used, what's the benefit of this coming trade war? Appears counter productive doesn't it?
3
National security is cited as a reason for the across-the-board tariffs. These tariffs will apply to Canada, which happens to partner with the US on a various national security and defense initiatives. Maybe we won't get a trade war. Instead, a lot of squabbles whose effects are hard to predict. It's Trump's economy now.
I don’t know why this is a shock to anyone. Trump is a businessman with a history of bankruptcies. He’s not an economist, and it’s not clear than his financial advisors are either, (Stephen Miller said a low dollar is good, sending the markets crashing that day, too). Trump appears to have no idea of what one industry needs from another, and since he doesn’t read, and apparently doesn’t care to be educated, it’s another chaotic story from one day to the next.
4
Seems like he was having a temper tantrum when he announced this and now we all suffer from his impulsiveness. Canada will take the brunt of this. We are not happy.
2
Another point: "free" trade is partially responsible for the outrageous growth in economic inequality in the Western world. It's immensely beneficial to the firms that can import components or raw materials for cheaper than it would cost them to purchase those things from American suppliers but it also comes at a cost to society: unemployment and wage-depression in those industries that must compete with no-regulation, no-employee rights third world countries. Since America has reasonable regulations in favor of the environment and her workers, free-trade inevitably leaves American firms with a choice: either drive down their own labor and regulatory costs or move production offshore. Free-trade zealots are, in effect, calling for an end to the laws that protect the environment and America's workers from exploitation.
Trade with the world is indeed good, but the world needs to adopt our same standards in order to make it fair. Otherwise you are lifting the third world up at the first world workers' expense. Keep this up and it will be someone worse than Trump who will eventually come to power.
2
In the hands of a global-savvy, economics-trained tactical genius, this move could lead -- in a game of multi-dimensional chess -- to better trade deals for the US, long-term. Trump is a blundering fool with a skill-set that stopped growing in the fifth grade. It isn't going to turn out well.
2
Count me as one of this Republicans who do not agree with this tariff issue raised by a Republican POTUS.
He has been a good Republican so far - better than we expected. Massive tax cuts and less and even lesser regulations. Someone pointed out that you Republicans take credit for tax cuts but what about deficits.
My rejoinder is Democrats raise taxes and still deficits increase. Which is worse??
I apologize, I digressed.
The POTUS should be reminded that Detroit wrongly convinced Congress in limiting number of vehicles imported from Japan. Hard to believe, but Congress was told because of inferior quality.
What do Japanese do??
They pull a friendly Pearl Harbor by putting up factories in our country and still manage to put Detroit in bankruptcy.
Congress did something similar to protect our oil and gas with all kinds of restrictions, bio fuel etc. We were still losing production big time. To a point, where about now, many in Congress said Americans will be commuting on foot if nothing was done to protect us.
Shale happened.
Likewise, bankrupt Detroit discovered American ingenuity and re established itself.
Something similar here can happen here.
Protectionism has not worked in the past and will not work again.
Forget those Smoot folks - just ask fans of Ross Perot why he did not win election. Of all people, Al Gore demolished him once and for all on that Larry King show.
POTUS is warned that in 2020 debates, another Democrat will pull an Al Gore on him.
Regardless of what you think of these tariffs policy wise . . .
The measly tax cut the 99% are getting from tax reform will be chewed up by the impact of these tariffs and Trump's proposed 25 cent increase in the federal gas tax, etc.
---------------------
Trump/GOP Motto: "No Billionaire Left Behind"
Trump is ignorant & knows nothing about economics, much less about the complexities of int'l trade, exchange rates, tariffs. Domestic economics is complex enough but when you wade into global mkts someone like Trump [who has never been educated in economics] sounds like a bombastic 12 year-old having a hissy fit. Trade wars & tariff barriers to trade are NOT desirable for our trading partners & our adversaries. Time for Trump to back off & let the experts deal with what will soon become a mess!
The past is the past and it's impossible to go back to the "old" economy. It's over. The economy is now global and has been for some time. Maybe a refresher Econ 100-level class at Wharton will help the president and his staff understand globalization.
So, just accept the crippling of the American industrial sector and get used to those hollowed out towns all over the midwest. Before we resign ourselves to economic defeatism, lets try a different route. Actually, lets try EVERY different route.
"Many economists" say trade war will hurt economic expansion. Let's try for greater precision -- "More than 99% of economists" say trade war will hurt economic expansion.
I live in Dundas Ontario a suburb of Hamilton (Canada's answer to Pittsburgh. Needless to say a 25% tariff on steel and 10% on aluminum is getting a lot of attention. Canada is the largest supplier of steel by far to the US. However it is difficult to understand why tariffs such as this would be targeting Canadian steel. Based on the most recent numbers Canada already has a trade deficit with the U.S. Perhaps Mr. Trump should consider that the very issue he is supposedly rectifying will be further exacerbated if Canadian steel exports are reduced. Do we then place tariffs on American automobiles or plastic or industrial heavy equipment. What will that do for the rust belt if European imports are suddenly cheaper. It is frustrating that Mr. Trump can make these pronouncements without ever having to account for the fallout. Hopefully there will be an accounting in 2020.
5
"The tariffs Mr. Trump announced Thursday were his boldest move yet on trade, and a sign of resurgent power in the White House for economic adviser Peter Navarro and Commerce Secretary Wilbur L. Ross Jr., who have long pushed Mr. Trump to act more aggressively on trade, which was a signature campaign issue."
That would be the same Wilbur Ross who made a quick profit of billions in this same steel industry by picking up the remains of LTV and Bethlehem in anticipation of GW Bush tariffs and then sold it o Mittal Steel, a foreign conglomerate.
Why does the press never mention the messy parts of the story?
1
Its great to maneuver for more American jobs and production. Its shortsighted to think American's will not have to pay substantially more for products deriving from those American jobs and that American production. Laugh now, cry later.
How can this trade policy possibly fail? The stable genius tRump has a good brain for understanding the nuances and economies of the world. After all look at all the companies he started that were huge successes.
Self imposed 'genius' Trump will drive profits for U.S. mfgs, as well as drive prices up for those using S & A. The five importers will absorb the 25%/10% tariff, probably a split with some going to the price of their S&A. And who is the loser here, the American Consumer, who will pay more for the finished product. Inflation will go up a bump as well. The path the GOP has taken from day one of the new self imposed 'genius' Trump has not changed: whatever it takes to increase business profits is good for America, with total disregard for the impact on the American consumer. I would be totally surprised if Asia, Canada, Mexico, Europe, and Latin America do not retaliate is some fashion.
Experts said Hillary could not be beaten, Economics is a "science" that is ripe with things that they think they know but really don't. Anybody who compares our trade stance to 1930's I don't even consider listening to. Nobody yet knows what the actual proposal will be. Who will it be targeted to? Time will tell.
6
Tomorrow Trump will say something or tweet a completely different idea about tariffs.
1
The Europeans have been dying to raise trade barriers against U.S. tech companies, e.g., Microsoft, Apple, Google, etc. Now Trump just handled them a golden opportunity. Trump is so stuck in the 19th century. I am surprise he did not complain about the demise of RCA.
12
Maybe they have been....but what is the French equivalent of Google? Unintentionally, you highlight precisely why a trade war could very well be easy for the US to win: the only things people buy from us are the things they have a hard time getting anywhere else. Its far easier for the US to make steel, drill oil, or manufacture blue jeans than it is for other countries to copy the highly technical, specialized, or luxury labels we produce.
These so-called experts are all without exception globalists experts. There are of course experts on the other side of the argument, who favor protections for the American industry, against globalists, who will say the opposite.
In such a situation, there are always winners and losers, the goal is to have a net gain, to gain more than you can lose, and this is a calculation that Trump has made.
Trump was an anti-globalist candidate, and the voters supported that policy position compared to the globalist one. It should come as no surprise that Trump is implementing these steel and aluminum tariffs.
World trade deals do not benefit the American or other first world worker who ultimately competes for wages and jobs against workers in the developing world. This formula works for the grossly overpaid corp CEOs but not the American worker.
8
I am happy to have less cheap stuff to have more jobs and to have some strategic materials made in the US rather than say in China.
5
In such a situation, there are always winners and losers, the goal is to have a net gain, to gain more than you can lose, and this is a calculation that Trump has made.
Trump calculates? Is that why he was the loser in six bankruptcies?
Too bad Trump thought through none of this. If he wants to support the American worker he should support American unions. He just ruined much of the manufacturing sector that CONSUMES steel and aluminum.
Although Trump thinks he is responsible for the economy it is a global phenomena happening in most developed countries around the world. What he doesn't understand that international trade, not protectionism. is allowing it to happen. What he will soon find out is that without trading partners, things will change, and it won't be pretty.
6
Trade benefits those who want cheap stuff, and those that get the jobs. We get the cheap stuff they get the jobs.
2
Have you looked at the US employment numbers lately?
If you really live in Tennessee, you have no idea how much this deal will hurt our state. Electrolux just postponed an expansion plan in Springfield because of the tariff. We depend on global trade.
When their cars and toasters cost more, and their factories are closing because of new tariffs abroad, loyal Trump supporters will still be spinning to Trumps lies about Clinton.
10
Trumpanistas will wallow in their collective lunacy, it’s sort of their thing.
We should be more concerned about the Burnout’s penchant for protectionism.
Let’s pray the Democrats do not experience a 2010 of their own.
America needs domestic steel production so that America is not at the mercy of the Chinese when America and China go to war. War machinery requires steel, and we can't assume that we will have access to foreign steel during wartime. Therefore, we must protect our domestic steel industry.
Everything - all of our decisions - need to be based on the fact that America and China will be at war within the next two decades and that this war will be a war for national survival. We have never faced such a test in our history, and it is imperative that we win. If we don't, we will be destroyed.
Free-traders are siding with America's enemies.
3
America imports most of its steel from Canada, an ally. How is alienating our allies improving our national security (the legal basis Trump is using for the tariffs)?
1
What about three of the nine steel companies that were at the WH this week are owned by : Russia, China and Mexico. Looks like the pie is a little more complicated then what a first glance from the gut tells you.
But war is all about profit isn’t it!
Wars are easy to start and very, very hard to bring to an end. My advice - don't start one.
7
Sure if you start a trade war you should plan to win it. Imagine say China with a lot less product being purchased by the US, their economy might be severely impacted and we would mostly miss some cheap stuff we can do without.
3
Help me ?
America has Always been at War ?
Experts always say that it won't work or will make the problem worse. It's what they do.
5
Personally, I'm going to write to my government in Canada and recommend that it target the states and industries that voted for Trump in serious and painful retaliatory measures. If American voters want to support Trump and want to support his attacks on the Canadian economy, the least we can do in response is our best to cost some of those supporters their jobs.
8
So you don't even know if Canada will be impacted and already you are talking about this sort of thing. I doubt either Canada or Mexico will be effected except through changes in NAFTA. Try thinking. How about we boycott your country and tax those many citizens who go to say Florida for the winter?
1
Most steel imports come from Canada. But sure, stop Canadians from spending money in Florida and supporting their economy.
what would Fla. do if many snowbirds began going to other areas??
There is only one real economic expert in the entire world, and it's Donald Trump. Don't think so? Just ask him.
6
Seriously, I have no understanding about the pluses and minuses of the effects of a trade war. The only thing I look at is the stock market taking a downturn two days in a row after POTUS talks about tariffs. If wall street is the economic thermostat then I am worried.......
1
So you were very happy with say tax reform? The stock market is not that important to the economy.
1
The left is outraged
From CNBC 2016
In 2016, the Obama administration announced "Chinese corrosion-resistant steel would be subject to a final anti-dumping duty of 210 percent and anti-subsidy duty of between 39 percent and up to 241 percent.
Anti-dumping and anti-subsidy tariffs of between 1 and 92 percent will apply to imports from various producers in South Korea, Italy, India and Taiwan (although it was exempted from anti-subsidy duty)."
https://www.cnbc.com/2016/05/26/us-hits-china-and-others-with-more-steep...
Where was the outrage then ? Compared to those percentages , Trump's 25% is modest.
6
What you have reminded us is that we can end up like fools taking extreme positions on trade without having a very good sense of the history, including the details. I don't . I know of some serious problems for labor and for the environment that have been side effects of NAFTA, and a few of the of the positives and negatives that have come from increased global trade.
What I also believe is that Trump himself does not have any in-depth understanding of what his threats or actions might do - and has antagonized allies while supporting some governments which are distinctly unfriendly to the US. That is what's so troubling.
3
Big difference between a couple of countries on specific products and the whole world. Your comments do not make sense.
Trump is amazingly effective at fomenting new international relationships, just not for the U.S.. Threatening tariffs, disengaging from trade and climate pacts, bullying companies, ignoring congressional agreements, and acting unilaterally on matters of global implication, has led to unprecedented alliance among long-time adversaries. The collective and orchestrated response from the rest of the world will ensure these tariffs fail to benefit anyone.
The old saw of “the enemy of my enemy is my friend” doesn’t hold up in this case, as the U.S. has no friends when it comes to tariffs. It’s only Love of Self, aka narcissism, at which Trump excels and drives his decision-making.
3
Yep. Chinese sell treasuries, rates go up, stocks crash, bonds crash, government debt swells and the Fed has no bullets left. This is shaping up to be quite a trumpian economy. Thank Paul Ryan and Mitch McConnell too.
3
Oh, what a surprise— an elected official actually doing what he promised voters he would. The Obama administration talked a good game about the middle class while creating jobs mopping the floors at Walmart after offloading a truck full of goods made in China. Enough is enough.
5
Yes how could anybody be surprised when this president does or attempts to do what he promised. It is a core principal of this president. And it is not a truck load but a shipping container.
3
Does it even matter to you if what he promised is not good for us, or is all you care about that he follows through on stupid and dangerous promises?
7
Citizen— “not good for us” says the politicians that got us in this
mess.
1
The hypocrisy regarding concern for tariffs needs to be discussed. The same wealthy people (and the politicians who uniformly task themselves with protecting their wealth) who are apoplectic over Trump raising tariffs had no problem with Obama's TPP which proposed inordinately long patent periods for "intellectual property" which included pharmaceuticals.
"For example, the list price for the Hepatitis C drug Sovaldi is $84,000 for a three-month course of treatment. A recent analysis found that Indian manufacturers can profitably produce the drug for just $200 per three-month course of treatment, suggesting a tariff equivalent of more than 40,000 percent." *
If you're willing to open your mind to ideas from independent economists - and not just uncritically accept the Times pronouncements which are uniformly consistent with the views of the wealthy, try Dean Baker.
* http://www.truth-out.org/opinion/item/35389-think-trump-s-45-percent-tar...
https://www.theatlantic.com/business/archive/2016/12/trump-trade-deficit...
3
Well, if the Americans are not interested in our Canadian metals, I am sure we can sell them to the UK, a better, saner and nicer trading partner to us and a country that Canadians have more in common with.
If they are not interested, then perhaps the Communists might be interested.
We need to cut more of our ties to the Americans until they can act in a safe and sane fashion. That may take some time. It's a big world out there, Canada, so let us take advantage of it.
3
You need us much more than we need you, now I bet Canada won't be involved in this, nobody has indicated that they will.
1
Canada has become fat and lazy by relying primarily on the US market as the main market for its goods, which are primarily unprocessed natural resources. Plain and simple.
Trump is simply amping up the 'blame Canada' rhetoric that's been fomenting for decades since NAFTA in the 80s. The harsh reality for Canada and Canadian industry is that its being forced to accept that it can no longer rely on its decades old role and easy route of existing primarily as a source of raw materials for the US market. Its so ingrained in our social and commercial culture that we look at other opportunities and agreements (eg. CETA) as merely side gigs.
Just as individual investors are told to diversify their investment portfolio, like it or not, its long overdue that Canada (and other countries) figure out how to cultivate other markets for their products. It's a long term project to shift our mindset about our role in the world market and revamping our production, self-investment & sufficiency, and expanding trade opportunities with other nations and trading blocs. We should have started a generation ago, but at least start now.
The fact that we are so unprepared to do so and panicked about Mr. Trump's latest rhetoric says more about the state of Canadian industry than the state of the US administration. The US is well within its rights to do whatever is best for the US without having to look out for Canada. Time to open our eyes and deal with the new normal, proactively.
1
So now it makes sense!
There is a special House election on March 13th in southwest Pennsylvania's "steel country".
Of course Trump announces a steel tariff, just out of the blue, to get these Pennsylvania voters to vote Republican!
Watch, Trump will dump the whole idea like a hot potato on March 14th. And his buddies will make a killing once again as they buy up the stocks they sold short before Trump's announcement.
Another con by the Don!
7
Even if things go wrong, like a 5 year old, Trump is going to place blame upon anyone but himself or completely deny the 'fake news'.
This country's only hope is that either Democrats retake Congress or he gets impeached.
3
Would it have helped if TPP had not been canceled. Didn't it attempt to create an acceptable dialogue amongst all parties (except china) to address these kinds of issue. So Trump is the big dummy. But honestly don't dems have some responsibility for not speaking up for the working class.
"President Trump is finally following through on the type of trade crackdowns that terrify Republican leaders in Congress"
I realize that I am grasping at straws here but maybe there is something hopeful in the quote above. After all, if Mitch McConnell and his gang of liars & thieves (ie the Republican leaders in Congress) hate the idea of tariffs, maybe tariffs aren't such a bad idea after all. Just sayin'.
3
Trump buddy Carl Icahn unloads steel stocks prior to tariff anouncement. I am shocked, shocked to find insider trading going on here.
4
True?
If this doesn't work out, it will almost certainly be Obama's fault, right? Because, given the Stable Genius's track record in business, he's never been at fault for any failures. He'll live up to his trademark statement (apologies to Harry Truman): "The Buck Stops Somewhere Else".
1
Am I the only one who sees through Trump's ploy? It's not a "shiny object", it's not random, and it's not a distraction. It's a clever political move that has nothing to do with actual steel or actual results. His declaration of steel tariffs are perfectly timed a week ahead of a Congressional special election in Pennsylvania's 18th district. That's in southwest PA; the heart of steel country. Currently Democrat Conor Lamb is breathing down the neck of his GOP opponent, who is getting TONS of national money from the usual rightwing suspects. These tariffs (which will likely never actually be enacted) will paint the GOP as pro-steel and pro-worker for just a short period of time (before people realize Trump won't actually do anything), and possibly change enough minds to tip the scales in this close election.
6
I checked to see how much my $32,000 American car would cost new in Japan. $75,000. Two and a half times what it costs here? Why? Tariffs?
I say let's impose similar tariffs on Japanese branded cars. Let's see how many Camry's Toyota would sell if they cost $75,000 apiece.
5
They are assembled in two US factories. And from Fortune- citing a cars.com report " The Toyota Camry is, apparently, the most American vehicle on sale in the U.S. "
What part of the car is American?
"Cars.com released its 10th American Made Index (AMI) of the vehicles that qualify as the most American—based on where parts are manufactured (a vehicle must be made of at least 75% U.S. parts to even make the list), where the vehicle is built, and what percentage of the vehicles’ sales are U.S.-based, among other factors."
How many do you want to lay off?
2
How foolish, Camry's are built in the US, many of the parts for them are made here, try something that makes sense, not ignorance.
2
Not a "bold" move. Consistent with the tax legislation and the budget proposal, a reckless and an impetuous move. Decisions made recklessly rarely lead to successful outcomes. As confirmation, I suggest a review of Mr.Trump's business ventures. An almost uninterrupted series of business failures and swindles.
1
If this actually happens. Will backfire b/c he blathers and actually does nothing. What happened to the unity promise by the way? Since he is so keen on keeping those promises.
When the crunch comes it will be like vast crocodile jaws.
1
I don't believe Trump passed Introduction to Macroeconomics at the formerly esteemed Wharton School of Business- unless of course he cheated. I would like to know what courses he took at Wharton and his grades. I have a hard believing he could pass the simplest test of basic economics. He doesn't know what he doesn't know and, worse, he ignores the advise of experts and his own Cabinet (DoD secretary).
Note to Republicans in Congress: now do believe that this man is dangerous to our national security? It's all on you to pass legislation limiting his authority to make stupid trade decisions that hurt more Americans than it helps. And what ever happened to your mantra that the government should not be in business of picking winners and losers?
1
If steel and aluminum become more expensive, airplanes and cars will cost more to produce.
Other nations won't have to impose tariffs on our cars and airplanes. Airlines and people in those countries won't buy our products because they will be too expensive.
2
Of course these tariff measures were criticized by business groups.
The inflation that would result from the higher costs of domestic steel production would mean actually having to raise workers salaries in order for them to afford products made from U.S.-made steel and aluminum.
But somehow, before NAFTA and other misguided trade schemes, we lived with relatively protected domestic manufacturing industries that paid rather well before we exported those jobs wholesale to Mexico and China
And as I recall, prior to the so-called free trade mania, income polarization wasn't nearly as bad as it is now in this country because you couldn't play off domestic workers standards of living against $2 a day peasant labor in Asia.
Free trade, indeed. It certainly wasn't free to all the workers in this country who paid a very dear price with their jobs and futures.
3
"...small, rural communities would be disproportionately hurt by a trade shock."
Well, nothing he's done so far has made a dent in what passes for thinking in his base. Thoroughly grounded in cognitive dissonance, they will find some way to blame anybody but their Leader.
2
Steel tariffs might increase the price of machine guns, which would be nice.
3
I am curious how many failed steel and aluminim production facilities Wilbur Ross owns. He is a vulture capitalist who bought up bankrupt steel mills in te past and then made out like a bandit when tariffs were imposed..
http://nymag.com/nymetro/news/bizfinance/columns/moneyandmind/10279/
In 2001, when LTV, a bankrupt steel company based in Cleveland, decided to liquidate, Ross was the only bidder. Ross suspected that President Bush, a free trader, would soon enact steel tariffs on foreign steel, the better to appeal to prospective voters in midwestern swing states. So in February 2002, Ross organized International Steel Group and agreed to buy LTV’s remnants for $325 million. A few weeks later, Bush slapped a 30 percent tariff on many types of imported steel—a huge gift. “I had read the International Trade Commission report, and it seemed like it was going to happen,” said Ross. “We talked to everyone in Washington.” (Ross is on the board of News Communications, which publishes The Hill in Washington, D.C.)
1
This is the EXACT same policy as Bernie wanted to employ.
3
The general tariff on steel and aluminum imports is the economic equivalent of holding a gun to your own head and warning, "Stop! Or I'll shoot!"
1
He truly has no idea how the economy or world works.
1
Trump reminds me of students I encountered while in school, for whom a C was good enough, as they did not desire to put any extra effort into any assignment before them.
Sure, it is nothing for Trump in a moment of pique to talk about implementing tariffs on steel and aluminum, as CNN and others have said, throwing 'red meat to his base'. But as the stock market has shown with its jitters and talk of Trumpian chaos extending to tariffs and retaliation on a far greater range of goods and imperiling carefully arrived at diplomatic relations with other nations, this is all quite dangerous and poorly considered.
As Paul Begala, a Democratic strategist said today, Trump was a lunatic before becoming president, is a lunatic now as president and will continue to be one after the presidency. Some people don't have the ability to look ahead, to considered consequences.
So long as Donald is a front page item on every news outlet on every day, he is happy. Heaven help the rest of us.
4
Stock market is down - boo hoo, Wall Street. Let's focus on Main Street.
2
If ALL international trade ceased, U.S. workers would benefit by the amount of our current annual trade deficit - about $800 billion/year!
5
Respectfully sir, that is completely wrong. The reason trade happens at all is because we are better/cheaper at something than someone else and vice versa. If we stopped all trade, pretty much everything in our economy would get more expensive. We all might have jobs but we’d no longer be able to afford all of the nice things we are used to having. We’d also have a bunch of people doing jobs that we have already shown we are not really very good at. The amount of trade is a sensible thing to review regularly to ensure any changes aren’t too disruptive. However, no trade at all would be disastrous. We tried this once before (Smoot-Hawley Tariff Act) and ended up doubling the length of the Great Depression. Please let’s not do that again.
2
It's like they say in NASCAR, my friend, it's not the going fast that hurts. It's the stopping fast.
1
I'm glad to hear that it's so simple.
Why hasn't anyone thought about this before?
(Just making sure, you have some background in Economics, right?)
Trump: Look at the bright shiny object over there (steel tariff)!!!
Way too much negative press this week for Trump so he needed to distract and divert attention to a whole new controversial subject!
21
Where were these "experts" when the embarrassing and damaging trade imbalances were being set in? These experts are about as expert as the reporters for this paper. Forget them. Trust Trump.
9
A trade imbalance might be bad under some circumstances, but the existence of a trade imbalance is not evidence of anything wrong. I have a trade imbalance with Home Depot and Kroger but there is nothing suspect about that, nor anything "unfair": I get garden equipment and groceries while Home Depot and Kroger get my dollars. Because the exchange is voluntary, it is preemptively good for both sides. Prohibiting the exchange makes both sides worse off. I see no evidence that President Trump understands that.
2
when you look a the world as a whole free trade is good. not so in the real world. but the wealthy [with free movement of capital] DO see the world as one -- and benefit with free trade. They will get 'hurt', and the recession will begin with the 'job-creators'.
1
Wharton must regret giving him a degree.
18
Yes. Wharton should be encouraged to go over Trump’s academic record to certify that he actually qualified for his degree.
Trump can't and won't listen to "experts", any experts or even his own staff. If he was a CEO, the board would boot him out with all the turnover that has and is occurring. He is delusional within his own thoughts and reacting like someone who has lost his mind. How can someone who knows little about anything effectively govern? He can't. Mueller, where are you? This insidious, collusion from someone so deranged must be stopped.
21
I wonder what you have to say about Trump bankrupting casinos he owned, serially driving his own businesses into the ground, i.e. Trump Vodka, Trump Steaks, et cetera, repeatedly declaring bankruptcy, running his affairs in such a way that no American bank will loan him money -- serious you need a better connection to reality.
Terrify: meaning they will lose Their " jobs". The GOP/NRA Party created this Frankenstein's monster, and eventually the villages will take action.
Please Enjoy.
15
King Trump?
7
Is anyone surprised? If so, you shouldn't be; the Dotard is following his core template of squandering advantage, causing damage and delivering bankruptcy.
This is one of the key steps towards ruining a strong economy. Just watch....
14
“You always hear trade war at these moments. That doesn’t mean that’s always wrong, but it usually is.” There's nothing at all "usual" about the Trump administration and its idiotic "policies". The muddleheaded directives issued via tweet that are as close as we will likely get to official policy announcements are so ludicrous that they would be funny if they weren't so devastating. My retirement is getting killed by this idiot and his rule by chaos. Three more years of this and we can all look forward to working for the rest of our lives, except of course for Trump and his family & friends.
8
Go ahead Trump, start a trade war and watch the economy tank. Basically the strong economy you inherited from Obama is the only reason you are still in the White House at all. Mess that up and even the flobber worms in the GOP leadership will turn on you. You'll get impeached, Dems will win control in the mid-terms, and the wrongs of your horrible administration can be corrected (hopefully) because anything you do will be by weak executive order and can easily be reversed. Personally, I'm rooting for you to move ahead on this.
21
As long as countries like China and Mexico exploit their workers in regards to safety and health, and operate with no concern for polluting the enviorment the US will never compete in producing many goods. If your dollars are going to support this practice than so be it. Cheap has its costs.
7
As if Trump and his EPA Administrator Scott Pruitt have concern for polluting the environment.
1
OK class...Smoot-Hawley Act of 1930...
What did it do?
How did it end?
Please mail your answers to...
1600 Pennsylvania Ave NW, Washington, DC 20500.
Alternatively you can pray, sing the national anthem,
and ask your preferred interlocutor to bless the country.
15
Oh Donny Boy,
The stocks, the stocks are falling...
21
There is nothing "bold" about being impulsive; it takes forethought and reflection to be strategically bold...which is not Mr. Trump's way.
14
And what is the tariff on ties made in China? BTW does anyone know the size of the one time bonus paid out to Trump Org employees? How about the size of the raises given to Trump's employees?
9
Here comes the Trump economy...
9
Remember, it's the economy, Stupid.
5
Guns are made of steel, right? Uh oh.
14
Depends what kind of steal your talking about and what part of a gun. The barrel would be a yes but so is aluminum and plastic. So we may need to put tariff also on those just to be sure /s
1
Anyone now running a steel or aluminum factory in the US would be a fool to invest in expanding the operation and hiring more workers. That's because Trump has shown he has no credibility and changes his mind as soon as there is pushback. Witness DACA, gun control, Medicare etc, etc, etc. It's one thing to be unreliable regarding social policy. But once you lose the faith of the marketplace, there are economic consequences you cannot lie your way out of.
9
Trump really doesn’t have a clue about much at all!
12
The European Union and China were involved in a trade dispute over textiles that delayed an agreement that expired in 2005. The United States' high tariffs on auto parts are said to be a sticking point in a number of trade agreement negotiations. These disagreements hurt the incomes of each country involved in the disputes. Trade only works when countries import and export.
3
Correct me if I'm wrong, but isn't this the same guy who bought Chinese steel to build his hotels. Also, how many foreign workers does he employ at Mar-a-Lago. It appears that there is no America First policy but there is a trump First policy. And where is Congress?
24
"we win big. it's easy. (we win because we won't pay)...
trumpster is a deadbeat. that's how he does business.
7
The basic strategy seems to be this: drive most Americans into penury so they can't buy stuff. Wait for China's standard of living to increase. Then, boom, we produce the goods, they consume them, and we win the trade war! Easy! And all we need to give up is our standard of living.
8
This is want the people who voted for Trump want:
1) A trade war;
2) A nuclear war; and
3) An accelerated and expanded war on the planet that sustains us.
I'm glad statistics suggests I won't be alive for more than another 20 years.
I'm also glad that I married a foreigner from a stable country with universal health care that is not run by nuts. Unlike most of the people who say they might leave the U.S., I actually can do so legally.
14
DEVASTATING TO OUR COUNTRY!
Who put this idea in #TheFailingPresidentTrump 's head? The small group of plutocrats who stand to benefit while the larger economy is shattered? Putin? The voices in his head?
His every decision seems to undérmine all that makes America great.
10
Nice...Love the choice of words! ...He also took initial steps to <> trade policy, pulling out of the Trans-Pacific Partnership...
2
Hey, they deleted the most important word from my comment - "He also took initial steps to -reorient- trade policy, pulling out of the Trans-Pacific Partnership"
1
The reason Trump has not let us see his taxes is because if we did we would see that he knows nothing about business, economics, the American economy, the world economy, budget development, management, maintenance........
7
This should be fun to watch as your glorious leader learns a lesson in global trade. Care to bet what nation is going to win?
5
Trump is the tsunami and America is the Poseidon. And this is not an adventure.
5
Donald doesn't have the mental capacity to think-through an important policy change like this. He is going to do damage to the pocket-books of the populace in order to make US Steel great again.
Industries come and go. We must adapt. Other countries can make steel... and many other things... cheaper than we can. Let's buy from them. We should concentrate on new trades, businesses, and technologies that will support us into the future. Leave legacy industries, often dirty and polluting, behind.
4
Incompetency bordering on lunacy, on full display for the world.
10
The abbreviated headline for this article on the Times' online home page reads, in part, as follows:
"A Bold Move on Trade..."
BOLD!!???
How about "Reckless"? Or "Ill-informed"? Or "Dangerous"?
Oh, your headline writer needed a short word? How about "Wild"? Or "Scary"? Or "Blind"?
"Bold" implies some minimal level of thought and strategy, backed by some rudimentary skill and intelligence - traits which Trump has repeatedly demonstrated are utterly lacking in his repertoire of cognition and behavior.
NOTHING Trump does is "Bold". Try "impulsive", "stupid", "ill-advised", "knee-jerk", "angry", "reactive", "bellicose" or "infantile".
"BOLD"!!??? I don't think so.
19
And what will happen to international demand for Trump hotels as a result?
10
Half the time, it's all talk and nothing happens. Regardless, we will be regaled with whatever happens, it was what Trump intended and it was good for us, even if it was bad ( e.g. Tax cuts ?)
4
This is much ado about nothing. We just need to have confidence in the man who knows more about the military than the generals do. Look at the wonderful progress in Afghanistan. It is so phenomenal that we don't receive reports any longer.
Our man in the White House knows more about immigration than the experts who have studied the issue for years. He has picked only the finest people. Only he can fix Washington. Just look at his stunning progress to date. And on this issue of international trade, he likely knows more about economics than the economists do. We underestimate the experience he gathered by having overseas golf courses and beauty pageants.
If we slide into a global recession, he knows more about bankruptcy than anyone else.
There! Feel better now?
51
Tariffs look like a way to increase taxes without calling it a tax increase.
8
Trump has overlooked the fact that Ohio is 8th largest international exporting state in USA, and international two way trading has been a huge part of Ohio economy for many, many years.
Those steel workers account for a minuscule portion of Ohio economy in do,Lars and number of workers, and that industry isn't where Ohio looks for its future.
So big blunder on so-called strategy, Prez.
8
It is widely thought that the tariffs passed into law by Hoover made the Great Depression worse, and this was when global trade was a fraction of what it is now.
Counter tariffs by major steel producing countries (China, Japan and others) would hurt American exporters and cause a knee-jerk response from Trump to retaliate further.
This president and party are making all the wrong economic decisions as the economy continues to expand and grow: we've had 88 months of straight job growth and improving economic indicators. We should be bringing deficits down not exploding them.
-Tax corporations and wealthy individuals appropriately.
-Provide healthcare for all, which would produce big benefits for companies, the economy and improve people's lives.
-Modernize our infrastructure.
-Plan to significantly lower greenhouse gas emissions. Not addressing this soon will cause serious economic and human suffering in the future.
-Invest in research and education.
The economy seems fine now. It won't be in 10 years if we continue on this trajectory.
9
Make it easy. Build a wall around the whole country. Nothing goes out, nothing comes in. We don't get bananas or to travel outside of the United States, nor can we purchase Ivanka shoes. Cheap clothing at Macy's and Wal-Mart? Don't think so, read the tags. We live on our own, like pioneers. No foreign movies, no foreign food, no foreign TVs or smart phones. No foreign exchange students. Is IKEA stuff made here? If we time it right, Trump and his family will be visiting one of their properties abroad and won't be allowed back in. Keep everyone and everything out! Great policy, great mind, as always, well thought out by our incredible stable genius!
17
You can grow bananas here. The US can produce basically everything it needs.
When I was studying for my graduate degree in economics I was approached by a group of MBA students at NYU. They wanted to know if I could go over some economics problems with them. It was real basic macro stuff.
I couldn't believe these young Wall St hotshots were a few months away from taking their MBAs and making a ton of money and they didn't understand basic macro economics.
So when somebody says to me "Donald Trump has an MBA from Wharton, he understands economics", I think "Yeah right".
12
Except he doesn’t have an MBA, he has a BA in Economics.
4
You probably won't be surprised to hear that Trump doesn't have an MBA, he as a BS (that's the ticket!) in economics (?!@#) from Wharton, which has basically disowned him.
9
I'm a retired educator. I've been tempted to take on piecemeal work that I find on craigslist to "write research papers," despite knowing the that the purpose of many of these projects is to help someone commit academic fraud by turning in a term paper they didn't write under their own name.
Considering the amount of idiotic stuff he tweets and says, his lack of understanding how the world works, his lack of personal discipline, and especially his lack of any sense of ethics, should we be suspect that he cheated his way through college?
1
I support President Trump in this experiment. I have opposed his policies on environment, Federal Income Tax , and banking regulations, but here it seems worth a try and I applaud his courage.
1
Thank you Donald. Finally, we are standing up for blue collar, union jobs, for US industry, and we are standing up against lax enviromental and labor protections in places like China that businesses there use to prey on US manufacturers. For too long we hsve sold out the middle of our country to protect Wall Street, Hollywood, and Silucon Valley fat cat Democrat millionaires.
1
Yes, Donald, thank you for standing up for those 80,000 steel and aluminum jobs when the American companies that use steel and aluminum employ eighty (80) times as many American workers. When trade barriers go up for Boeing aircraft, United Technologies elevators, the smart phone you typed your comment on, and god knows what else, and when prices rise for American consumers of beer sold in aluminum cans, maybe you will wish you had thought about this some more. Good night and good luck.
7
The Inited States buys about 2 percent of its import steel from China. About 20 percent comes from Canada. Are you saying Canada has lax environmental standards and cheap labour?
7
Three months from now: "Who knew trade was so complicated?"
11
Trump is finally keeping his populist promises. Globalization and laissez-faire trading policies have caused massive job losses to the most vulnerable, wage suppression, and increasing inequality between the rich and poor. American companies have sold out blue collar workers by outsourcing overseas where it's cheaper, and Trump is now attempting to level the playing field and force them to stop. I'm sure Bernie Sanders supports this. And if the Wall Street Journal and Goldman Sachs hate it, then I'm for it.
Just because Bernie likes autarky doesn't make it sound economic policy. American exporters reliant on steel and aluminum employ 80 times as many workers as the foundries. Good luck pal.
5
I think the China strongest responsive position would be to put tariffs on agricultural Imports, particularly Maize and soy beans from the US, and to find other sources of the same. That would hit Trump's base hard right where it matters to them and their pocketbooks. Hitting the base would put strong pressure on Trump.
6
Economics 101 the "dismal science" in other words ...Ask five economists and you'll get five different answers - six if one went to Harvard.
4
Bernie Sanders would likely do the same thing. It sounds all fine and dandy when you spout it into the mic, but the world is way too complex for such simplistic policies.
3
Are these the same experts who said the stock market would collapse if Trump were elected?
1
Trump endlessly touted his deal-making prowess on the campaign trail.
But all he's done so far is give things away:
concessions to Russia, white pride to Poland, our dignity to Saudi Arabia, Tomahawks wasted in Syria, Turkish shells to the Kurds, and beautiful chocolate cake to China.
And he's gotten in some nice travel and plenty of golf games.
But the only deals I see benefit the Trump's and Kushners.
Instead of attempting to negotiate a trade deal as he promised he would, Trump goes right to "trade war" without even trying to hide it.
Come on, Mr Mueller. Please end this farce before this Great American Failure (GAF) can do much more damage.
6
Trade wars lead to world war, it drove Japan to attack in WW2 as its economic expansion reliant on oil and rubber was denied. While it seems that economic factors were important in Japanese expansion in East Asia, colonialism, trade protection, and the American embargo compelled Japan to take this course. Domestic politics, ideology and racism also played a role.
2
How low do things have to go and how long do they have to stay there before we officially name it The Trump Recession?
3
I’m starting to figure this out. If I get a buck fifty each week from my taxes- something like $75 a year I can use that savings and in four or five years save up enough money so the next truck I buy will be the same because I beat the steel tariff? Where do I sign up?
1
I suggest this trade issues gives us a good insight into the simplicity of Trump's thought processes. Sophisticated reflection on anything is inherently multivariate. Trump is not a multivariate thinker--there are only winners and losers and nothing else.
Applying this to trade, it does appear that the only solid, clear, intractable political thought he has is that trade is simple--the winner is the country that exports more that it imports. On this single variate measure, the US is indeed a global loser with a significant trade deficit.
How his reaction to Canada become interesting. The US now and over the longer term, runs a trade surplus with Canada, so in Trump's terms, it is Canada that is the loser. But Trump can't see this. Why?
Because his NAFTA trade negotiators, naturally enough, report to him only the few industries where the US has a deficit with Canada--lumber, dairy, and steel. Trump's simplicity focuses on these alone, and so he sees Canada as the winner, even though overall the exact opposite is true. No only is Trump unable to EVER see anything from the perspective of the other, but even when considering things only from his American perspective, he can only see the battle ground that he must charge into to win.
One can understand the peculiar mental deficit in one swoop. Trump function at Stage 2 in Kohlberg's sequence of stages of ever more sophisticated moral reasoning: https://en.wikipedia.org/wiki/Lawrence_Kohlberg%27s_stages_of_moral_deve...
4
So Trump is a Wharton graduate. Would he release his transcripts or is that in the same category as his taxes? I would love to hear what his professors thought of him.
5
There is very little doubt Trump will destroy our economy before his term ends. He cannot possibly separate his own financial interests from the financial welfare of the country.
3
The timing of Trump's tariff announcement may seem random but it has immediate political motives. It comes after a day in which Trump got so full of himself in a televised meeting that he dissed the NRA. Of course, he backpedaled in less than 12 hours. But the damage to his base was done. Trump needed some new shiny object to dangle before his low-information supporters. So he trotted out his campaign promise to raise tariffs to feed some red meat to his base.
Trump knows his base is essential to his political survival. An energized base will defeat any GOP congressman in the primaries who does not kowtow to Trump. And Trump needs a complicit congress to avoid impeachment.
Any damage these tariffs may cause to the U.S. or world economy is an afterthought for Trump. As always, he puts his interests first.
3
I understand the reason for tariffs is to stimulate the associated US companies to expand and fill the resulting demand. Several thoughts.
1. Given the approved tax breaks, it seems more likely that companies will improve their stock buyback positions, improve efficiencies in existing facilities and use automation rather than hire semi and un skilled labor to work in heavy industry. No big jobs impact here.
2. Where is the labor of the size equal to China and the rest of the world willing to work in blue collar jobs? The unemployment rate at 4.1%. Is the potential work force near existing plants?
3. How long will it take for companies to positively affect the economy? I say about 2 to five years, minimum.
4. Will companies be willing to train the unskilled?
5. Existing plants will need expansion; time frame 2 to 4 years, minimum.
6. The Bush stab at this was a flop; eventually rolled back. What's different?
7. How will strategic reserves be maintained in a possible decade long decline while we ramp up?
8. Has anyone compared fair trade vs. tariffs for jobs creation over the last 25 years?
9. Exactly how many jobs will be created, at what earning level, in what areas, and what will be the total estimated private investment needed to fill these gaps?
10. Acquiring capital equipment, proper labor, raw materials, transportation, benefit structures, contract agreements and more are really out of the league of a real estate developer 6 times bankrupt, right?
3
This is another short sided decision by a President who has no clue about the workings of global economics and trade. If you don't have steel you don't have a country? Really? Did any of the sycophants explain to our President the comparative advantage theory and principles of free trade? I do hope that the EU and Canada will retaliate focusing on export products made in red states. It's a pity that at the end the ones getting hurt most will be the lower middle class but hey maybe next time they'll think twice before voting...
3
Until recently many DEMs had reservations about Free Trade and warned against social/environmental damage this could bring about. (See Nader et al The Case Against Free Trade.) But the DEMs have now abandoned that issue, though the inequities become more and more obvious.
This unwillingness to face the social damage done in places like western PA, WV and Ohio (former swing states that often voted DEM and supported unions), in fear of offending their Wall Street donors, and Trump’s willingness to voice the economic concerns of the people living in those places (even if he acts counter to their interest), has put the DEMs on the back foot.
We need DEMs to start fighting again for FAIR trade rather than FREE trade. We need them to acknowledge the damage that’s been done in places like PA and WV. And we need them to take the lead in proposing plans to help those populations regain their place in a productive American economy.
14
“…the social damage done in places like western PA, WV and Ohio…”
The damage has been caused by a US law that has allowed “foreign-based” American corporations to sell goods and services in the US and avoid paying over $1 trillion in US taxes by keeping their US profits abroad.
If those companies had been paying their US taxes the federal government would have been able to increase spending on infrastructure, on retraining displaced workers, and on other services, for example. That would have created direct and indirect jobs that would have offset the unavoidable job losses from trade.
The solution could be a Value Added Tax which would reduce the US income tax liability of “foreign-based” American corporations. This is the German “secret”.
In any case, they should pay their US income taxes in full every quarter, just like their US based competitors do.
“Unfair” trade is not the problem. Tariffs and quotas is not the solution. Free trade without special tax advantages is.
Capitalism (not crony Capitalism) DEMANDS COMPETITIVE (not free (read free-for-all) markets)!
Free markets result in monopolies and monopolistic competition.
Competitive markets result in VALUE: the best and widest array of goods and services at the best prices.
If 10% of economists understand this, I would be surprised.
If 0.1% of politicians understand this, I would be surprised.
Economics may barely be a science and economists may often be wrong.
But,
The one thing I am absolutely certain about is that Trump doesn't understand the complex system he is messing with.
He doesn't read, he doesn't pay attention to experts, it seems that he can't keep his own thoughts straight, and he can't seem to separate reality from his fantasy life.
The only way Trump can get anything right is by accident.
It is looking increasingly like there is no way to avoid disaster. That may be a depression, a war, flooded coastal cities or ??.
Mueller needs to hurry up.
147
Economics is no more a science than is history. Too many unknowns and variables to use double-blind controls to make repeatable and predictable results.
Trump is no more a businessman than Queen Elizabeth II is a businesswoman.
Trump can fire Sessions, Rosenstein and Mueller. Trump can pardon Jared, Don, Jr, Paul Manafort, etc.
1
What has he even gotten right by accident?
With all the world’s experts, I can’t imagine why we have so many problems. Perhaps there needs to be a study by a panel of experts on that subject.
7
Maybe I can help you with that, John.
All the world's experts can't accopunt for the greed and ego of corporate types who believe to their core that there is no limit to the money they should have, and that any negative impact of, say, raping the earth or starving their workers, or, yes, starting a trade war because it feels good, is areasonable privce and everybody, especially the experts, should just shut up and let them get on with it.
That's one thing.
3
Don’t need a panel. It is because the powers that be often don’t listen to the experts. Their only consideration is $$$.
2
Yea! Let's go back to the dirty old days of mining, refining and smelting steel and aluminum.
While we're at it, let's stop buying wood from Canada, we would be much better off cutting down our forests before we blow the tops off the mountains so we can more easily get to all those valuable underground commodities.
I'm sure great cities like Pittsburg, that have successfully transformed their economies, would love the idea of getting rid of high tech and going back to grimy industrial production
Ooh, ooh, and don't forget states like West Virginia. I'm sure they're dying to get a whole new generation into jobs mining the high grade coal to coke all that new steel. Literally dying from black lung.
49
at least, they'll be covered by "beautiful" Trump health care ...
I don't know enough about how this works in practice. Can the President simply impose such tariffs singlehandedly, by Presidential fiat as it were, or does he need consent from Congress or some other body? If the latter is the case, I don't think we need to worry too much: this is just one of those random thoughts that seem to occur to him in the middle of the night, that he can't resist tweeting about. He leaves it to others to clean up the resulting mess.
On the other hand, even if he is able to follow this up on his own, it's entirely possible (as well as devoutly to be hoped) that he'll forget about it when the next flash of brilliance occurs to him.
8
Canada is the largest supplier of steel to the US (16%), and the car industry is one of the major users of steel who product will rapidly increase in cost to US consumers. Assuming this tariff proceeds and stays in place, a crucial question is whether the US steel industry will be able to respond faster that the car industry. I figure steel will respond much more slowly than car manufacturing.
So here the thing. The US and Canadian car industry is highly integrated. It will be relatively easy for car manufacturers to move production north to existing and under used Canadian plants for tariff free steel. Then what happens? Trump slaps a tariff on car imports?
Hang on, we're all in for a rough ride--unless the Dems win the mid-terms (by taking the House but not the Senate), and Mueller provides a report that forces impeachment. Since free trade is a GOP big deal, even a GOP Senate will support a Dem House initiated impeachment.
Is this wishful thinking, or have the odds of impeachment in Trump's first term just doubled.
25
The Democrats need to take the Senate as well as the house for impeachment to be meaningful. Impeachment doesn't get you very far unless there's a conviction in a removal from office by the Senate. Impeachment is just a criminal charge like an indictment. The actual trial is in the Senate.
2
Maybe the odds of Trump getting thrown from office have increased with his wacky behavior. Republicans are starting to react, starting to realize that Trump has “no core principles only core whims”.
Trump want to make America like it was many years ago, when his memory was intact and before the fog of mental decline set in. Trump wants homes and businesses to burn coal for heat and he wants the steel and lead smelters to belch out their smoke.
Trump is an old man stuck in the past who cannot use a computer or email. He longs for the days when the couches in hotel lobbies were stuffed with horsehair and the mattresses were stuffed with excelsior and brothels were above the bars.
The world constantly changes and people adapt, but Trump’s world is an imaginary TV reality show from the ‘50s.
4
The steel and aluminum industries are critical to our national security. How can you build ships and airplanes with your enemies controlling the inputs? It's really that simple. We have sold out our capabilities to meet quarterly expectations and reward CEO's with fat bonuses. Our national security is much more important.
3
which one of our enemies will withold steel so that their army can attack the usa? in the age of cyber warfare, all you need is a geek with a computer and wifi ( not seriously, but not far off). no enemy will bomb the us, because in this century they can destroy the country more easily by shutting off our power grid, destroy our banking records, etc... While I am sure you believe what you say, what you are arguing about is the equivalent of someone worried about enough horses in getting prepared for ww2
3
What enemies? Canada? Britain? South Korea? These are the countries that export steel to the US and they have been close and important allies!
5
Canada is our enemy?? No, Texas is our enemy.
6
Trump is his own worst enemy. His Tax Cut added to these tariffs will add over $2T to our debt and deliver very little if nothing to the middle class. These policies have failed before, what makes Trump think he can win a trade war? How many has he won before to say they are easy to win? What a fool!
40
Tax cuts and higher deficits during a time of expansion, and trade wars. Economically speaking, he's playing a game of horse shoes in a mine field. On a very windy day. While blindfolded, after a couple of drinks. And he's playing just cause he felt like it, not because he had to.
"Interesting times" indeed.
76
You forgot to mention that Obama imposed a 35% tariff of tires (but nobody cared then).
2
This wound up costing jobs. Rather than using it to justify Trump’s bigger tariffs, you should raise it as a warning.
3
Is it a 'trade-war', or just good old-fashioned 'nationalism'?
6
A "Bold Move"? How about more like a "Rash Move"?
17
We are in deep trouble. This has been a slow motion train wreck. This little lunatic has already put our country into deeper debt with his tax cut for the wealthy. He has bankrupted every business that he has ever owned. How do you even bankrupt three casinos? Every choice he has made has been catastrophic for this country. When will the so called deep state finally have enough ? He is going to take this strong economy and send us into a depression. This is what he does best.
39
he is nothing without the g.o.p. they are complicit.
6
Not a problem. The Dilettante Without a Clue, you know, the "successful" business man with a string of bankruptcies, will pretend again like he knows what he's doing. When the economy falters, conservatives will wrap it up in a neat package to tie around Obama's neck, their sycophants will believe it and put them all back in office. Lather, rinse, repeat.
64
How can one man be allowed to imperil our economy? Republicans? (Crickets heard)
51
The sky is falling, sky is falling. Only thing falling is executive bonuses that have been greased for too long on cheap labor overseas. Trade theory needs to be dropped from business curricula permanently; massive hidden subsidies, non-compliance and cheating. Softwood lumber has been decided 20 times and tarriffs remain. Sack Cohen today; blow up trade on Monday. Bravo, Mr. president.
3
This whole outhouse of arrogance is going to come crashing down. When it does, there is nobody there who will be able to help us.
25
If other countries retaliate, the poor US farmers will suffer bigly. If they cut the imports or apply tariffs on the US agricultural products by China and other countries, this will be very effective in delivering pain to Trump base.
38
Right. The US has the most productive agriculture industry in the world. Do you really believe that Chinese and other leaders want to increase the basic needs of their citizens by 25%?
1
I agree. Tariffing or finding other sources for Chinese agricultural Imports would be the response that would hurt Trump's base the most. The real irony would be that the current ambassador to China is a former governor of Iowa, a major exporter to China.
3
Farmers will suffer, but so will the U.S. steel industry itself. 50% of your U.S. steel ships here to Canada.
http://www.canadiansteel.ca/wp-content/uploads/2017/06/CSPA_CAN-US-Steel...
Freeland has already promised retaliation and I assume steel is first up for sure.
2
Unfortunately, Trump’s dysfunction is moving beyond silly things like building a wall to truly wrecking the US economy. Between the tax bill and engaging the world with paranoia and dysfunction, the US is becoming an extension of Trump world.
33
When in God's name is the Republican party finally see what the rest of the world sees? That Trump is a complete blithering idiot and is brick by brick destroying this country. Everyone from Mitch McConnell to Paul Ryan have to be held accountable for their enabling of this self serving grifter and his gang of white collar criminals. Every week another completely lunatic fiasco erupts if only to make us forget about the last one. What's next? A 500% tariff on avocados from Mexico to protect American farmers? 100% tariffs on electronics to protect all those millions of well paying manufacturing jobs that only exist in Trumps head? This nation is going to have a collective stroke.
99
Another article that only provides part of the picture while not even discussing the tariffs and other policies that our trading partners employ to keep their surpluses. It also doesn’t go into any detail about the history of the steel industry and how our trading partners dumped steel to gain market share.
3
Nor does it go into any detail about how our steel corporations invited dumping by failing to invest in updated facilities or technology in order to grab maximum profits while at the same time engaging in expensive war with their own labor force.
Or mention our mindlessly pro-business (read: Republican) government's bizarre decision to decimate our middle class instead of refusing to do business with countries that made slaves of their labor force.
Things could have been much different if we had admitted that a functioning capitalist economy requires robust regulation.
Instead, well, here we are.
2
Always good to see the nay-Sayers. Good ol negative fear-based reaction& comments.
1
Bold Move?
Like jumping off a cliff is a bold move?
24
trump made extra profit by using cheaper Chinese steels in his buildings when he could have used American steel and created jobs here. The problem with trade deficits isn't so much cheaper foreign products, it's more American greed and lack of consideration for the impacts of their choices.
35
President Trump does not understand that when one imposes tariffs, other countries will retaliate hurting Americans who sell goods and services to those countries, which is why other countries don't impose these tariffs themselves.
Prices will increase, and the only beneficiaries will be the governments imposing tariffs.
So, Trump voters, when you buy that Ford F-150, washing machine, or beer, and you pay 5 percent more, understand that the 5 percent isn't going into the pockets of Ford, Maytag, or Budweiser.
It is going into the pockets of the federal government; so, you can kiss your tax cut goodbye.
29
And rising prices mean rising inflation and rising interest rates. Which means what for the stock marker? And what what for the cost of reimbursing the trillion dollar hole due to the tax cut?
3
Oh, Republicans.
You loved him when he endorsed fat tax cuts for the rich. You loved him when he appointed a pro-polluter to the EPA. You loved him when his evil minion emasculated the Consumer Protection Agency.
You tolerated him when appointed inexperienced incompetents like himself as Cabinet secretaries and personal advisors. You tolerated him when he defended white supremacists in Charlottesville, criticized federal judges, and told one whopper after another.
Fear him now, do you?
35
Trump again does wonders to help businesses, except they are foreign owned and based. Domestic companies and the stock market get hammered. Ironic!
4
Really no way to know until it’s actually tried. The economists, after all, have predicted 9 of the last 5 recessions.
“…the trade war … could backfire, sending America and the world into recession…”
Actually, the more likely result would be a full-blown depression.
A so-called “negative” or “unfavorable” trade balance is the result of our buying more goods and services from other countries than the value of the goods and services other countries buy from us.
That means that jobs are created in other countries for workers who can now buy US goods and services which they could not buy before because they did not have jobs.
It also means that foreign governments accumulate dollars which they need to invest in order to protect the value of those dollars from inflation. There have been no better, safer instruments to invest them in than US treasuries, helping finance our federal budget deficit, keeping down our interest rates and stimulating investment in housing and other industries in our country.
The real reason trade has harmed the US is that companies that sell goods and services in the US have been able to avoid paying US taxes by keeping their earnings abroad.
If those companies had been paying their taxes the federal government would have been able to increase spending on infrastructure and other services, for example, creating direct and indirect jobs that would have offset some of the job losses from trade.
9
Might begetter to save the whale oil trade or maybe even the coal industry. With about the same results.
3
The Trump Economy starts now. Any bets on who he will blame when it all goes south?
6
By the time Trump is finished, the ONLY industries left in the US will be steel factories and coal mines. MAGA.
4
Even if it backfires, Trump would be unscathed. As usually, he creates casualties and not become them. His multiple bankruptcies are prime examples.
4
To get a clue on today's world economy President Trump should read Tom Friedman's best selling book THE WORLD IS FLAT. There's just one problem. DJT doesn't read.
2
Boeing workers should be worried.
China can shift all their future plane purchases to Airbus in retaliation. Seems like a poor trade off, protection of US steel and aluminum workers but loss of business and jobs for the much more lucrative and higher paying jobs at Boeing.
9
It would take years for any benefits to be realized. We are no longer the industrial engine of the planet-our own steel, oil, and other metal and construction companies have long since moved operations elsewhere.
We buy foeign cars routinely. A company like Nucor exists by consuming the scraps fallen from the table. But no one or three of so companies will make a difference here, soon enough to evade an economic downturn and China and others have too much invested in their exports to let this pass un mentioned or without some form of retribution. This is mindless and thoughtless. Only someone who will never feel the effects of his actions regardless of how they effect the nation could behave in such a casually destructive manner.
4
Trade war to place America first is a worthwhile experiment. It has risks and possible benefits. Let the investors decide whether it is worth the risk.
2
Dow Jones down 400 points, investors have spoken.
7
Old news. End of the day Dow down 70 and NASDAQ and S&P are up.
1
If ever there was a case of 'whose ox is getting gored' this is it. One Class has benefited from our trade deficits. One side has not. Now things might be changing. But as President Obama reminded us....'elections have consequences'. This is a huge one. Will it be a good one? For some. Maybe. Not for others. I think the Chinese will blink first.
1
Nothing to worry about. The oligarchs will come out on top, one way or another and workers and consumers will suffer the consequences and pay the price as we always do. Most corporations will do just fine since they can lay off hundreds or thousands of workers if need be, close factories here and move them to Third World countries, all their usual profit-maximizing tactics. For the ordinary worker and consumer, it's just another day.
2
".. Many economists say the opposite, that..."
Oh please. The OVERWHELMING majority of economists(not just many) completely missed to foresee the Great Recession
So much for their credibility
This might be a good time to ask why we have such a large trade deficit.
German workers make more than American workers. They have greater job security, better healthcare, maternity leave and longer vacations.
Germany has a trade surplus. So do the so-called "socialist" Scandinavian countries.
What's wrong with the U.S.?
19
We consume more than other countries. Thus we import more.
2
Bingo, Phil! Give that man a kewpie doll... but please make sure it wasn't made by an 11 year old girl working in a factory in Vietnam.
2
Economists, notably Paul Krugman, terribly misjudged the political consequences of globalization - and forgot that politics trumps economics any time.
On the other hand, people that understood how industrial societies work , foresaw the current development, correctly. Notably Drucker, who predicted that manufacturing trade would follow the pattern of trade in agricultural goods, where there is NO free trade whatsoever. The US has more than 3000 quotas on such imports. And for the SAME reasons
Let me just quote
"The decline of manufacturing will trigger an explosion of manufacturing protectionism"
Peter Drucker, 2001
Drucker famously observed that he was interested in people, whereas economists were interested in the price of commodities
He went on to found the Theory of Management .
Readers interested why Drucker predicted the rise of industrial protectionisms, click here
https://www.economist.com/node/770819
1
Not to worry, GOP.
Even after this latest stupidity cost Trump's base hundreds or thousands or millions of jobs, his base will stick with him.
He's their Great White Dope.
120
So when we fall back into recession, how will Trump spin this decision to be the fault of the previous administration? Does he not realize that the country isn't protected by the bankruptcy laws he and his failed businesses were?
44
trump will blame it on Obama.
6
I remember this dance. George W. Bush tried it and it didn't work very well. In the end it had to be rolled back. This is similar to Trump's claim that the coal industry can be saved. Even the mine owners know that isn't true. As usual our politicians refuse to take the steps that can truly help the United States and all her citizens. I guess it feels better to punish rather than to help.
105
Where are the Democratic voices speaking strongly to the issues of unfair trade practices, despicable labor/environmental practices of other countries with which we trade "freely", and the consequent destruction to American communities in places like western PA, WV and Ohio? What are visionary Democrats proposing to do to help those communities overcome their economic difficulties, which can be laid squarely at the feet of "Free Trade"?
I have voted DEM all my life and will continue to do so. But they have failed miserably when it comes to leading in this area.
18
You ask good questions. However, the tariffs on steel and aluminum are directed to a significant against trading partners with advanced economies, with welfare states and labour costs and labour standards and environmental standards that are at least the equal of American ones. They also tend to have much higher rates of unionization. You need therefore to ask yourself what Trump's goal is. A reasonable hypothesis is that he seeks to destroy a rule governed trading system for the world.
@ J Jencks
Bill Clinton and Barack Obama were both well too the liberal progressive partisan political right of FDR and LBJ as expected, but Ike and Nixon as well. Schumer and Pelosi represent that ghastly caste past.
1
Thank goodness that I am retiring soon and, therefore, have my 401K locked into low risk investments. We probably won't flee the country as it collapses around us. But since I am married to a foreign citizen from a stable country with universal health care, we can even change our residence if necessary to get medical treatment, while keeping our home in the United States.
54
Must be nice to have a backup country to go to. For the rest of us we will just have to hope Canada will grant us refugee status.
69
And no thought for the general good and the younger generation starting out, as long as they can go to Walmart so that they can fill their closets with 15 pair of shoes per person.
5
I wouldn’t count on our neighbors to the north. They should start erecting that wall any day now.
23
Given our current trade deficits, this is long overdue.
3
Americans WILL regret this - if Trump actually goes ahead with the moves against Canada. It's a different country than China, Korea, Mexico, etc... Far more important for the U.S.. More than $1 billion of goods crosses the border every day between the two countries.
6
Neither you nor Trump have the slightest idea why we have a trade deficit. Nor whether or not it's important. Krugman traces it back to the Republican tax cuts.
9
U.S. actually enjoys a trade surplus with Canada when services are included.
http://statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/gblec02a-eng.htm
That may change shortly.
3