Tag Archives: tariffs

economic news

Tariffs harm U.S. economy, experts say

It turns out that Donald Trump’s alleged expertise on international trade policy is, shall we say, a bit overstated.

Put another way, the president’s decision to impose tariffs on imported goods has harmed U.S. taxpayers and cost American jobs he vowed would return in droves.

Whose analysis is this? The Federal Reserve has released a study laying out what it says has been the impact of the tariffs across the land. It hasn’t been good, according to the Fed analysis.

This likely will bring some recrimination from Trump, who will say the numbers are wrong, they’re cooked up in some star chamber kitchen and that they’re intended to throw the upcoming election into his opponents’ corner.

As The Hill reports: “We find that tariff increases enacted in 2018 are associated with relative reductions in manufacturing employment and relative increases in producer prices,” the report by Fed economists Aaron Flaaen and Justin Pierce reads.

This is pretty in line with what many economists have said all along about tariffs, which is that they don’t harm the producers of the goods being imported into this country, but that they inflate the prices we pay here.

Trump is having none of it. He keeps insisting that tariffs are part of a successful strategy to “put America first.” He wants to punish countries that don’t play fair in the game of international trade. I certainly understand the president’s stated reason for wanting a fairer playing field.

Why, though, must he invoke tariffs that do two things immediately? They boost prices on imported goods, which is a de facto tax and they rattle the daylights out of financial markets, affecting the retirement portfolios of millions of Americans ā€¦ such as, well — my wife and me!

This so-called trade policy damn sure isn’t making America great again.

International news

Let’s give credit where it’s due on immigration

It’s time to hand out a bit of credit where I believe it is due.

The Donald Trump administration has worked out an agreement with Mexico that aims to crack down on what’s been called “irregular migration” through Mexico into the United States.

The payoff is the suspension of a 5 percent tariff on all products imported from Mexico into this country. That, right there, is reason to cheer this result.

Mexico is going to send about 6,000 national guard troops to border entry points, concentrating on its border with Guatemala; it also is going to hold those seeking asylum in this country and start working to grant them such status in Mexico; the United States also will be able to return Central American migrants to Mexico while their asylum status is being adjudicated.

OK, it’s not the perfect solution. However, it remove for the immediate and medium-term future the threat of nonsensical tariffs that the president threatened to impose. Let’s get real: The tariffs do more damage to American consumers than to Mexican exporters, as the tariff only will add to the cost of goods coming into this country.

Trump sought to hold the tariff threat over Mexico. His tactic seems to have worked. Mexico sent its foreign minister to Washington to negotiate a deal with the State Department, Homeland Security and the White House.

How much direct involvement included the president himself, of course, remains a mystery. My hunch is that Trump didn’t play much of a role in the nuts and bolts of such an agreement.

Still, it happened on his watch. Now it’s up to Mexico to deliver on its pledge to act more proactively and aggressively to stop the flow of illegal migrants through its country and into this one.

business news, International news

Stop the presses! Trump suspends tariff!

It’s nice to be able to say something positive emanating from the Donald Trump administration.

The president has announced a suspension of scheduled tariffs on all goods coming from Mexico, which was supposed to take effect on Monday.

Trump said he would impose a 5 percent tariff on those imported products, which in reality is a tax on American consumers, unless Mexico took action to stem illegal migration from Mexico to the United States.

Well, Mexico and the United States have reached an agreement, the details of which will be revealed shortly.

No tariff, said the president. That is good news! I am glad to share it.

According to PBS: A tax on all Mexican goods , which would increase every month up to 25% under Trumpā€™s plan, would have had enormous economic implications for both countries. Americans bought $378 billion worth of Mexican imports last year, led by cars and auto parts. Many members of Trumpā€™s Republican Party and business allies have urged him to reconsider ā€” or at least postpone actually implementing the tariffs as talks continue ā€” citing the potential harm to American consumers and manufacturers.

The impact on the tariff would have a profoundly detrimental effect on Texas, which conducts an enormous cross-border trade with Mexico. Texas farmers were upset with the proposed tariffs. So were the state’s two Republican U.S. senators, John Cornyn and Ted Cruz.

The Trump administration sought to pressure Mexico to do more to stem the flow of migrants coming through that country into our country. I don’t know what Mexico has agreed to do. I hope it passes muster. I also hope it works.

Tariffs on Mexican goods inflicts far more harm within our borders than it does in Mexico.

national news

Party of Lincoln, then of Reagan, now of Trump

The Party of Lincoln morphed over time into the Party of Reagan.

Now it has become the Party of Trump.

The first men, Presidents Abraham Lincoln and Ronald Reagan, both defined Republicanism to conform to the spirit of their respective times. President Lincoln sought the party to become a more inclusive body and he fought to preserve the Union. President Reagan instituted a contemporary form of conservatism, one that saw government as part of the problem that afflicted the nation.

Donald Trump? Well, he has taken it somewhere else altogether. It’s an angry political party. He calls himself a “populist,” but flaunts a garish, glitzy lifestyle every weekend he jets off to Mar-a-Lago or to Bedminster. He panders to the religious right while having to live down a past of philandering and obscene behavior.

Now he has gone against traditional Republican policy favoring free trade to something called “fair trade.” He has imposed punishing tariffs on imported goods, prompting our international trading partners to respond with tariffs of their own on goods they import from the United States.

American farmers are getting pounded.

Congressional Republicans, particularly in the Senate, are incensed with the president’s punishing policies. The GOP is at war with itself. House members are backing Trump, seemingly out of some kind of fear that he’ll strike back at them. Senators aren’t so reticent, to which I say, “Good on ya.”

Donald Trump is not your “normal” Republican. I will continue to declare that he is not a Republican at all. He stands only for himself. He demands credit he doesn’t deserve and pushes aside blame that he does deserve.

The president has redefined every parameter one can imagine. His followers say that’s a good thing. The rest of us just shake our heads.

Politico has posted a story on the GOP divide. You can read it here. It will open your eyes.

business news

Trade wars aren’t ‘good,’ really, they aren’t

I believe it was the character Gordon Gekko, portrayed by Michael Douglas, who said in the film “Wall Street” that “Greed … is good.”

That was about three decades ago. These days, we have another character, who happens to be the president of the United States, who is saying that “trade wars are good.”

Well, greed isn’t necessarily good. Trade wars aren’t good, either.

Yet the president of the United States, Donald J. Trump, has now officially gone to “war” with China, the world’s second-leading economic powerhouse.

Ladies and gents, we’re all going to pay for this.

Trump has imposed tariffs on Chinese imports. As the New York Times has reported: On Thursday, President Trump showed no signs of backing down from his fight, saying aboard Air Force One that the first wave of tariffs on $34 billion in goods would quickly be followed by levies on another $16 billion of Chinese products. And Mr. Trump continued to threaten Beijing with escalating tariffs on as much as $450 billion worth of Chinese goods.

How are the Chinese going to respond? That remains the open question. According to the Times: ā€œAt the moment, I donā€™t see how this ends,ā€ said Edward Alden, a senior fellow at the Council on Foreign Relations. ā€œThis is very much in the presidentā€™s hands because heā€™s got advisers that seem divided, some substantively, some tactically. I just donā€™t think weā€™ve had any clear signs of the resolution he wants.ā€

Trump’s war against our traditional allies and trading partners has reached around the world. He’s imposed tariffs on Canada and Mexico, on the European Union and on Great Britain.

Tariff is another word for “tax,” meaning that the tax will add to the cost of producing the goods being shipped. If we’re going to impose these taxes on imported products, then the nation from which they come will respond with tariffs/taxes of their own on the goods that come from the United States.

Think, too, for a moment about the U.S. Labor Department’s report today that non-farm payrolls grew by 213,000 jobs in June. Good news, yes? Of course it is!

Will we continue to experience this continuing job growth if manufacturers no longer can afford to do business in this world of growing tariffs and taxes?

That’s my fear.

Trade wars aren’t good.

business news

Motorcycle maker caught in crossfire

Hey, what’s going on here?

Donald J. Trump said that Harley-Davidson, the iconic motorcycle manufacturer, was going to benefit from his economic policies. The company would flourish from his protectionist measures. The tariffs and all that.

That’s not how it’s playing out.

Harley-Davidson has announced it is moving some of its operations offshore because it doesn’t want to get caught in the crossfire leveled by the European Union, which is retaliating against the president’s tariffs against EU nations.

As the New York Times has reported: Mr. Trumpā€™s trade war is beginning to ripple through the United States economy as companies struggle with a cascade of tariffs here and abroad. While Mr. Trump says his trade policy is aimed at reviving domestic manufacturing, Harley-Davidsonā€™s move shows how the White House approach could backfire as American companies increasingly rely on overseas markets for materials, production and sales.

Harley-Davidson is one of the few American companies that had resisted — until now — the temptation to relocate to sites overseas. They make Harleys in Wisconsin and the president was proud to hail the U.S.-made manufacturer as a beneficiary of the policies he is pursuing.

Of course, the president is distressed that Harley-Davidson would bail as a result of the tariffs and the trade war that has commenced between the United States and the EU. He said Harley-Davidson is using the tariffs as an “excuse.” He wrote in a tweet, according to the NY Times: ā€œSurprised that Harley-Davidson, of all companies, would be the first to wave the White Flag,ā€ he said. ā€œI fought hard for them and ultimately they will not pay tariffs selling into the E.U., which has hurt us badly on trade.ā€

Well, Mr. President, you didn’t fight hard enough, apparently. The trade war has just produced some early casualties.

Nice going. Who’s next?

International news

G-7 meeting ends with anger, outrage

That went well, don’t you think?

Don’t answer that. You know how it went. Donald Trump showed up at the G-7 meeting of economic powerhouse nations in Quebec and proceeded to p** off our nation’s most ardent allies and trading partners.

Then he jetted off to Singapore in advance of his summit with North Korean goofball/dictator Kim Jong Un.

What do you suppose the president is thinking by launching into his tirades against our allies? No need to answer that one, either. I don’t believe the “thinks” anything. He fires from the hip. He relies on “instinct” and “attitude.”

My favorite part of his departure was when he said if our trading partners don’t do what he wants — which is give in to our demands for high tariffs — then he’s going to punish them by refusing to do business with them.

Yep. The president of the nation that possesses the world’s strongest economy is threatening extreme economic punishment on our friends, the nations with which we are allied.

Canadian Prime Minister Justin Trudeau now is threatening direct retaliation for the tariffs Trump has imposed on steel and aluminum produced in Canada.

I feel all warm and fuzzy. Don’t you?

Oh, and then he tells them that Russia — the nation that swallowed up Crimea and went to war with Ukraine, all before meddling in our 2016 election — deserves a place at the table. He wants the G-7 to become the G-8 again.

This is how you “make America great again,” how you engender “respect” among the rest of the industrialized world?

I do not believe it’s working, Mr. President.

Intgernational news

Yep, Trump is a ‘joke’

There he goes again, “telling it like it is” even when it isn’t.

Donald Trump and Canadian Prime Minister Justin Trudeau had a chat the other day, discussing the president’s decision to impose steep tariffs on Canadian steel and aluminum.

He said the imports present a “national security threat.” Trudeau took serious issue with that assertion, to which Trump said, “Didn’t you guys burn down the White House” during the War of 1812?

Um. No. They didn’t. The British set the White House on fire.

Is this another “joke” that came from the president? If so, and that’s becoming one of the throwaway responses from the White House. someone will have to tell me how the “joke” is relevant to anything.

If it is a joke, then I also will need an explanation as to how the remark is supposed to generate a laugh.

The president already has demonstrated a shocking lack of historical perspective. To his base, that doesn’t matter. He’s “telling it like it is.”

Stupid.

business news

POTUS has weird view of ‘respect’

Donald John Trump keeps telling us how the United States is now “respected” around the world.

Let me think. Is that what the finance ministers of the six other industrialized nations said when they commented on the president’s absurd trade policies? That they really “respect” the United States now that Trump has imposed harsh tariffs on imported goods?

Um, I don’t believe that’s the case.

As the Wall Street Journal reports: The ministers of the six non-U.S. members of the Group of Seven industrialized nationsā€”the host Canada, along with France, Germany, the U.K., Italy and Japanā€”on Saturday issued a joint statement excluding the U.S., and conveying their ā€œunanimous concern and disappointmentā€ with the U.S. decision last week to impose tariffs on steel and aluminum imported from the European Union, Canada and Mexico.

Respect, eh? Is that what we are getting these days?

Trump’s penchant for protectionism does not breed respect at any level among the other industrialized nations. Indeed, what is laughable on its face is how the president considers U.S.-Canada trade policies as presenting a “national security threat” to the United States. National security threat? Is he kidding?

I believe a serious “national security threat” exists with Russians meddling in our electoral process, which is what happened in 2016 and which well might occur again this year!

Where is the outrage at that threat, Mr.

President?

Instead, Trump decided to vent his anger at a nation whose sons have fought and died alongside our warriors for most of the 20th and 21st centuries.

Shameful.

business news, International news

Trump ‘insults’ Canadians … nice!

Canadian Prime Minister Justin Trudeau has some strong thoughts about Donald Trump’s decision to impose punishing tariffs on Canadian steel sent to the United States.

He said: ā€œOur soldiers who had fought and died together on the beaches of World War II ā€¦ and the mountains of Afghanistan, and have stood shoulder to shoulder in some of the most difficult places in the world, that are always there for each other, somehow ā€” this is insulting to them.”

At a personal level, Trudeau has taken serious offense to the president’s curious decision to go to “war” against the nation with which the United States shares the longest unsecured border in the world.

Yes, Canadians fought alongside Americans and Brits at Normandy. Curiously, we are about to honor the D-Day invasion in a few days.

Sure, Trump recognizes the longstanding alliance between the United States and Canada. Then he said our allies are taking advantage of us in trade. His response is to get back at them; impose these tariffs in a classic protectionist move.

Trudeau is looking for some sign of “common sense,” but says he cannot find it in the policy announced by the “U.S. administration.”

Well, Mr. Prime Minister, a lot of Americans are just as confused as you are. Let us know when common sense presents itself.