All of this for what? The promise of lower tariffs? Don’t make me laugh. According to the World Bank, before this mess, the average global tariff was down to just 2.9 percent. In other words, when it comes to tariffs, the greatest gains from free trade had likely already been achieved. And yet, here we are. Since the trade war started, not only has no country lowered its tariffs but many tariffs have gone up. The Chinese had lowered their auto tariffs, but they have since raised them again in retaliation against the Trump import taxes. Canada was going to lower its dairy tariff though TPP, but who knows what will happen now. The NAFTA deal with Mexico doesn’t lower any tariffs — all our exports to Mexico were duty free already — but if implemented it will make the price of cars significantly more expensive.
(Note: I’m pretty sure the Tax Foundation’s finding, mentioned by Veronique in passing, that Trump’s tariffs will result in 94,000 fewer total American jobs is incorrect. There is every reason to believe that, in the long run, tariffs have no effect on total employment, either positive or negative. Tariffs protect lower-paying jobs by destroying higher-paying jobs; tariffs don’t increase or decrease the total number of jobs in a country.)
Scott Lincicome identifies 202 American victims of Trump’s tariffs.
Oh, and here are yet more American victims of Trump’s tariffs. (HT Brett King)
So-called “price gougers” deserve medals. Truly.
Here’s Tyler Cowen on any monopsony power that Amazon might possess.
Jeffrey Tucker writes about three movies on the 2008 financial crisis.
