Trump's Tariff Obsession Explained

[Flyguy330]

Trump does seem to have this obsession with Tariffs. Put a Tariff on everybody else and it will solve all your trade issues!

Most Economists reject his plan, saying it will blowback on US consumers and pump their cost of living higher.

So where did Trump get this idea from?

 

David McWilliams is an Irish economist, journalist and radio presenter. He has made a rather good podcast which explains the source of Trump's idea very entertainingly. It's definitely worth a listen - you'll learn a lot.

 

Hint: Remember Trump going on about Mount McKinley, and how it's name should never have been changed? How is this connected to tariffs? Listen and learn!

 

https://podcasts.apple.com/ie/podcast/trump-tariffs-the-gold-rush-the-mckinley-playbook/id1462649946?i=1000689257374

[SunnyinBangrak]

You are clearly an expert on tariffs and macro economics.

Can you explain how when China puts tariffs on imports it benefits the Chinese economy. Nobody claims otherwise.

When the EU puts tariffs on imports it protects EU farmers and benefits the EU.

When any country imposes tariffs on imports it benefits their economies. Nobody argues otherwise.

 

YET

 

When President Trump imposes tariffs on imports to balance the defecit and level the playing field, suddenly it is bad for America. Just where is the logic? Sounds like more emotional steam blowing?

[cjinchiangrai]

It is simple, a short term pump in revenue to make it look like offsetting revenue for big tax cuts for the billionaires. It is all about the money, follow the cash.

[candide]

Because it's simple enough to understand! 🤣

[riclag]

5 hours ago, SunnyinBangrak said:

You are clearly an expert on tariffs and macro economics.

Can you explain how when China puts tariffs on imports it benefits the Chinese economy. Nobody claims otherwise.

When the EU puts tariffs on imports it protects EU farmers and benefits the EU.

When any country imposes tariffs on imports it benefits their economies. Nobody argues otherwise.

 

YET

 

When President Trump imposes tariffs on imports to balance the defecit and level the playing field, suddenly it is bad for America. Just where is the logic? Sounds like more emotional steam blowing?

Its becoming more & more obvious 

the European socialist  don’t appreciate a strong leader! The cookie jar is closed

[candide]

5 hours ago, SunnyinBangrak said:

You are clearly an expert on tariffs and macro economics.

Can you explain how when China puts tariffs on imports it benefits the Chinese economy. Nobody claims otherwise.

When the EU puts tariffs on imports it protects EU farmers and benefits the EU.

When any country imposes tariffs on imports it benefits their economies. Nobody argues otherwise.

 

YET

 

When President Trump imposes tariffs on imports to balance the defecit and level the playing field, suddenly it is bad for America. Just where is the logic? Sounds like more emotional steam blowing?

Are you naïve? The U.S. also imposed special tariffs and non-tariff restrictions.

 

The main reason for trade deficits is the lack of competitivity or the absence of enough resources in the U.S.

 

Actually, outside China (ex. In Europe), people buy a lot of American brands, such as Apple, but they are produced in China!

[Flyguy330]

5 hours ago, SunnyinBangrak said:

You are clearly an expert on tariffs and macro economics.

No, I'm not an economist, but I'll have a go;

 

Quote

Can you explain how when China puts tariffs on imports it benefits the Chinese economy. Nobody claims otherwise.

 

I guess the answer is that China has been in a process of industrialisation over the last 35 years. They were using tariffs to shelter their growing industries in a low demand domestic economy, and prevent a monstrous trade deficit.  Whereas the US is a post-industrial nation, where they've already shipped out their heavy industries. It'll take time to rebuild them to service huge domestic demand, but that seems to be the intent. In the short term the demand for the products will remain high in the US, so the effect will be shortages, and higher prices for quite a few years.

 

Quote

When the EU puts tariffs on imports it protects EU farmers and benefits the EU.

 

The EU is pretty self sufficient in food supply and can do without foreign imports, at least in the staples. The imposition of tariffs on Canada will stifle the supply of fertilizer into the US (or at least making it much more expensive). Canada supplies something like 70% of fertilizer to the US. Food prices will rise as a result.

 

Quote

When any country imposes tariffs on imports it benefits their economies. Nobody argues otherwise.

 

 

I think I'd argue otherwise! It all depends on the trade balance between countries, and the ability to satisfy domestic demand without imports.

 

I'm happy to be proven wrong. I'm actually fascinated to see what will happen. I'm running out of popcorn! No tariffs (yet) on that.