Trade War Hits Home: Trump's Asinine Protectionism
Mike Mish Shedlock
The video, charts, and an excellent trade discussion by Rattner are on MSNBC.
Steel in Europe is 50% of the cost in the US.
Nearly everybody is a loser.
Soybeans are the US's biggest agricultural export.
There is a deliberate policy by China to target Republican states.
There is absolutely nothing new here. I have discussed all of this numerous times.
However, the Morning Joe produced an excellent non-nonsense interview that was a lot of fun to watch.
Perhaps it will sink home to the doubters if they watch the interview.
Trump's Asinine Protectionism
Don Boudreaux at Cafe Hayek puts it succinctly "Trump is insufferably stupid and officious on matters of trade."
Here is his letter to the WSJ on Trump's Asinine Protectionism.
Donald Trump is unjustifiably furious with Harley-Davidson for responding to tariffs in ways that any business in competitive markets must - namely, by minimizing its exposure to these government-imposed artificially higher costs (“Trump’s Motorcycle Club Revenge,” June 27). And he screeches like a banana-republic authoritarian when he threatens to impose more punitive taxes on Harley.
Finally, Trump reveals his cluelessness about competitive business when he suggests that, in moving more production overseas, Harley will suffer because Harley’s “customers are already very angry at them.” Obviously, Harley believes that its customers would be even more angry with it if it charges the higher prices that it must charge were it not to escape as much as possible the higher costs created by Trump’s asinine protectionism.
Donald J. Boudreaux
Professor of Economics and
Martha and Nelson Getchell Chair for the Study of Free Market >Capitalism George Mason University
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Some readers assert Trump is playing 3-D chess or whatever to get what he wants. The notion is ludicrous.
Mike "Mish" Shedlock