Originally Posted by !@#$%!
forgot to reply also to the trade & luxembourg business
why do we want to buy steel from luxembourg? because they have a comparative advantage in the steel business, and we want europe to buy, say, boeing airplanes.
of course right now they’re targetting motorcycles and whiskey instead.
but larry summers explains it much better of course
DONALD TRUMP’S TRADE POLICY VIOLATES EVERY RULE OF STRATEGY
summarizing, trump’s policy:
* lacks clear objectives
* unites adversaries and alienates allies
* uses self-damaging threats that lack leverage
“President Trump’s trade policies will raise the prices Americans pay for what they buy. They will reduce the competitiveness of the US economy. They will succeed where our traditional adversaries have failed in uniting much of the rest of the world in opposition to us. They will reduce our legitimacy and power by demonstrating our lack of competence. The sooner they are radically revised the better off the US and the rest of the world will be.”
Larry Summers is (or was) one of the biggest hypers of Neoliberal dogma around, and his recent conversion isn't really convincing me. He's still a globalist who's still defending the globalist system.
As far as our allies are concerned:
Trump’s America First Trade Tariffs Fuel EU Upheaval
In the midst of political chaos, Pres. Trump has deftly backed the EU elite into an international trade corner.
Once able to tout economic successes that buoyed the price tag on expensive policies, Europe may soon have to pay its fair share. From embarrassing NATO members to pay the agreed upon portion of their military defense to shining a light on unfair trade tariffs, the U.S. president has taken the high ground in the fight for economic justice.
In a move that makes good on yet another campaign promise to end unfair trade deals and deficits suffered by the U.S., Pres. Trump announced the days of unfair trade “are over.” The White House leveled a 10-percent duty on aluminum and 25-percent duty on steel imported from the EU, Canada and Mexico.
Despite suppressing U.S. imports for years by imposing tariffs upwards of 25 percent compared to the America’s low 3 percent, foreign leaders feigned outrage over the move.
French Pres. Macron called the U.S. leveling the playing field “illegal.” Germany called it “unlawful,” Canada dubbed Pres. Trump a “bully,” and one EU trade official called it a “bad day.”
In all fairness, when criminals are sentenced to lengthy prison terms, they also call that a “bad day.”
What is truly bad for the EU leaders is they will feel a political backlash as internal and external forces call for social and economic fair play."
And Boeing airplanes:
China proposes tariffs on Boeing planes, but it’s less than meets the eye
And raising tariffs on Luxembourg steel reduces their competitive advantage relative to domestic steel which helps rebuild the US steel industry.