Trump’s trade war is an intellectual
disaster
Matt O'Brien notes:
“So, to take one particularly pertinent example, he
thinks that our nearly $400 billion trade deficit with China means that, yes,
we’re losing $400 billion to them (although, in true Trumpian fashion, he
exaggerates this to be $500 billion instead). This is a strange sort of
cost-benefit analysis that ignores the benefits of imports (what we get), and
looks only at the costs of them (what we pay). It’s like saying that we lose
money anytime we go shopping anywhere, because stores aren’t buying anything
from us in return. Which, when you think about it, is almost a pre-money view
of the world where being able to barter goods for each other is the most
important measure of economic strength.”
The danger of dabbling in protectionism
https://www.washingtonpost.com/opinions/the-danger-of-dabbling-in-protectionism/2019/05/10/305a5d5a-7283-11e9-9f06-5fc2ee80027a_story.html
https://www.washingtonpost.com/opinions/trump-could-teach-ocasio-cortez-a-thing-or-two-about-socialism/2018/07/27/f4672a2e-9102-11e8-bcd5-9d911c784c38_story.html
https://www.washingtonpost.com/opinions/trump-could-teach-ocasio-cortez-a-thing-or-two-about-socialism/2018/07/27/f4672a2e-9102-11e8-bcd5-9d911c784c38_story.html
Consumers, not foreigners, are paying the Trump tariffs.
THE IMPACT OF THE 2018 TRADE WAR ON U.S. PRICES AND WELFARE
How Tariffs Stained the Washing Machine Market
https://www.nytimes.com/2019/01/25/business/economy/how-tariffs-stained-the-washing-machine-market.html
An excellent case study: Lobster Wars
https://www.bloomberg.com/news/features/2018-11-07/even-lobsters-can-t-escape-trump-s-trade-war
Steel Profits Gain, but Steel Users Pay, under Trump’s Protectionism by Gary Clyde Hufbauer (PIIE) and Euijin Jung (PIIE)
An excellent case study: Lobster Wars
https://www.bloomberg.com/news/features/2018-11-07/even-lobsters-can-t-escape-trump-s-trade-war
Steel Profits Gain, but Steel Users Pay, under Trump’s Protectionism by Gary Clyde Hufbauer (PIIE) and Euijin Jung (PIIE)
“Our arithmetic is stark. Steel tariffs will boost firm pre-tax earnings by $2.4 billion and create about 8,700 jobs—over $270,000 of pre-tax profits for each job. Steel users will pay an additional $5.6 billion for more expensive domestic steel, thanks to protection. In other words, steel users will pay about $650,000 for each job created in the steel industry.
Whatever President Trump and his lieutenants may have said about guarding national security or creating steel jobs, the tariffs were never about military strength or American workers. Their purpose was to enrich steel firms. They succeeded—but at an exorbitant price.”
Trump Has Promised to Bring Jobs Back. His Tariffs Threaten to Send Them Away.
Sugar Industry Is Exhibit A of Tariff Favoritism
Steel Tariffs and Hot Economy Take Toll on Infrastructure Projects
Tariff Wars – Unintended Consequences
www.bloomberg.com/view/articles/2018-10-14/trade-fight-with-china-trump-should-remember-the-chicken-war