Trump's Terrible Tariff Trade Troubles (T-5): Who's Hurt and Long Term Impact

Always black and white with Trump: His way, or hell to pay

Snapshot history of trade tariffs from a man who know economics, Nobel Prize winner Paul Krugman, his latest article from the NY TIMES below in part:

In normal times, Donald Trump’s announcement of tariffs on $200 billion worth of Chinese goods, bringing us closer to an all-out trade war, would have dominated headlines for days. Things being as they are, it was a below-the-fold story, drowned out by all the other scandals underway.

Yet Trump’s tariffs really are a big, bad deal. Their direct economic impact will be modest, although hardly trivial. But the numbers aren’t the whole story. Trumpian trade policy has, almost casually, torn up rules America itself created more than 80 years ago — rules intended to ensure that tariffs reflected national priorities, not the power of special interests.

You could say that Trump is making tariffs corrupt again. And the damage will be lasting.

Until the 1930s, U.S. trade policy was both dirty and dysfunctional. It wasn’t just that overall tariffs were high; who got how much tariff protection was determined through a free-for-all of horse-trading among special interests.

The costs of this free-for-all went beyond economics: They undermined U.S. influence and damaged the world as a whole. Most notably, in the years after World War I, America demanded that European nations repay their war debts, which meant that they had to earn dollars through exports — and at the same time America imposed high tariffs to block those necessary exports.

But the game changed in 1934, when F.D.R. introduced the Reciprocal Trade Agreements Act. 

Henceforth, tariffs would be negotiated via deals with foreign governments, giving export industries a stake in open markets. And these deals would be subject to up-or-down votes, reducing the ability of interest groups to buy themselves special treatment.

This U.S. innovation became the template for a global trading system, culminating in the creation (in 1947) of the World Trade Organization (WTO). And tariff policy went from being famously dirty to remarkably clean.

Then came Trump.

So far, Trump has imposed tariffs on about $300 billion worth of U.S. imports, with tariff rates set to rise as high as 25 percent. Although Trump and his officials keep claiming that this is a tax on foreigners, it’s actually a tax hike on America. 

And since most of the tariffs are on raw materials and other inputs into business, the policy will probably have a chilling effect on investment and innovation.

But the pure economic impact is only part of the story. The other part is the perversion of the process. There are rules about when a president may impose tariffs; Trump has obeyed the letter of these rules, barely, but made a mockery of their spirit. Blocking imports from Canada in the name of national security? Really?

Story continues at the NY TIMES link above.

My 2 cents:  Also consider these Trump policy and proposed trade and treaty approaches on the stage of his greatest “one-man reality show” ever (one surprising point of view here): 

“Trump-world: I will rule the world – deal with it.”

All this is an ugly issue and comes from, need I remind anyone, from the “best and smartest man ever – believe me” or so Trump says about himself.  That on top of all his documented business failures, yet people still believe and trust him.

Boy have we lowered the bar on the common sense ladder of values and not just to the bottom rung, either. Seems in a sense that we have added a new lower rung. 

One needed for Trump to step on and ask his base to join him or so it seems almost on a daily basis or so it seems. The worst part – those Trump loyalist believe every word his says.  Why is that?

I still can’t figure it out except with one label: Their hatred for everything he hates is a stronger than the things they say used to be good about us and that only Trump bring back to life – whatever that means I also am pondering a logical answer. If you have one, let me know.

Thanks for stopping by.

Now check out the stories linked below. Real people stories.

Links to stories and impact of “The Terrible Trump Trade Tariffs”

·        Trump tariffs are hurting South Dakota's economy

·        Tariffs are slamming newspapers with higher costs

·        Feds hear how tariffs are hurting manufacturing

·        Lumber Tariffs are Hurting Americans

·        Tariffs are Hurting U.S. Competitiveness

·        Senators say Tariffs hurting farmers

·        Tariffs are hurting whiskey industry

·        Tariffs are Hurting American Factories

·        Alcoa says aluminum Tariffs are hurting

·        Auto Parts Manufacturers Hurt by Tariffs and Rising Metal

·        Tariffs are hurting the already struggling newspapers

·        U.S.-China Tariffs: What's behind them who is hurt

·        More news on Tariffs hurting