WEB Notes: It is not that American’s resent foreigners. It is that our jobs have been sold out to them, outsourced and insourced. The next couple sections of this article is more what I think about with trade. Just saying, ‘hey, let’s slap tariffs’ on everything is not the answer…
Addressing the issue is the answer which is China’s unfair trade practices and Trump already knows that.
Yet, just the other day Trump showed his love for the Chinese communist so what is really going on here…
I simply see a continuation of water cooler politics.
President Donald Trump’s new tariff orders on steel and aluminum perfectly illustrate Trump’s feral genius for playing to popular resentment of foreigners ― and the high costs of his incompetence when it comes to the details of strategy and diplomacy. These tariffs were the wrong version of a long-overdue response to the predatory trade practices of China that are devastating American industry.
But Trump is onto something. It does matter whether the United States retains steel and aluminum industries, especially when their decline is the result of unfair trade practices by other nations. And the knee-jerk reaction to Trump’s orders shows how orthodox economists and the mainstream press refuse to grasp how trade really works, or what’s at stake. Instead, we got the usual sermon about the folly of protectionism and the risks of a general trade war.
But if you want to appreciate true protectionism, take a good look at China’s entire economic system. Steelworkers’ union president Leo Gerard put it perfectly: “Some of these idiots that say we are going to start a trade war ― well, we are in a trade war now, and we are just sitting back.”
What’s the nature of this trade war? Beijing subsidizes production, floods the world with a glut of products at prices below their true costs, blocks imports, demands trade deals with Western “partners” on terms that transfer technology and leadership to China, uses state intelligence agencies to steal intellectual property whose transfer it can’t coerce ― and then demands and gets special treatment under the WTO as a developing country! All of this grossly violates free market norms, and grabs market share in industry after industry at the expense of nations like the U.S. that mostly play by the rules.