Rising protectionism has the potential to have major negative effects on many European companies, yet firms have been largely absent from the public conversation. Why?
Japanese Prime Minister Shinzo Abe needs the US to confront North Korea, revitalize Japan’s economy and boost his standing at home. And he knows flattery is the way to this president’s heart.
The economic theory of comparative cost advantage is more akin to natural law – it can’t be wished away. And during the ongoing trade war ignited by Donald Trump, it has never been more relevant.
Canada recently slapped a tariff on US exports of the tomato-based condiment, and the EU plans to do the same, perhaps on the notion that it’s distinctly American. In fact, ketchup’s origins are global, as are its fans.
If the US were to stop dumping these valuable metals in landfills and to cease exporting them as cheap scrap, its imports could fall, and there would be less of these metals being made from scratch.
After the G7 fiasco, it’s clear that a trade war is in the making. US justifications of “national security concerns” for its tariffs suggest a legitimate target for EU countermeasures: coal.
International trade policy requires three traits to be successful and lead to mutual prosperity. Trump’s is missing all three, as he showed at the G-7 summit.
The underlying problem with Donald Trump’s tariffs on steel and aluminum isn’t Trump. It’s the increasing willingness by the U.S. to impose its will on its neighbours amid rising economic nationalism.
The Trump administration recently imposed tariffs of up to 25 percent on foreign steel and aluminum – including from the EU, Canada and Mexico, the three biggest markets for American goods.
The $60 billion in tariffs targeting China not only risks sparking a trade war, they represent a rejection of the WTO’s much more effective way of dealing with unfair trade practices.
While the tariffs are unlikely to stem Chinese intellectual property theft or reverse the steep trade deficit, they are certain to hurt American companies and consumers.
A global trade war seems well underway as China and the US exchange targeted tariff attacks. An economist explains what they are, how they work and why they matter.