If this is a trade war, the United States will win

The Spectator ^ | 1 June 2018 | Daniel McCarthy

[detective]

Donald Trump is following through on his threat—or promise, as his voters see it—to impose steep tariffs on foreign goods in the name of supporting American industry, starting with levies of 25 per cent on steel and 10 per cent on aluminium imports. Allies and neighbors that had been granted temporary exemptions are now set to feel the brunt of the tariffs: Canada is America’s leading source of foreign steel, and Mexico and the European Union will also feel the pain. They’re all threatening to retaliate, and the press is calling this a trade war.

If this is a war, it’s one the United States will win. The thing to keep in mind when reading about retaliation is that the US has trade deficits with all of these countries—as well, of course, with China, which is not one of America’s leading sources of steel but whose state-subsidized steel industry is responsible for depressing prices globally. Because the US buys far more goods from these countries than they buy from us, they stand to lose much more in a tit-for-tat over tariffs. How can China or Canada put tariffs on American goods that they don’t actually buy? They can’t, and what they do buy, while not insignificant, pales before what Americans buy from them.

[DoughtyOne]

Steel is also a strategic resource. Our nation should NEVER NEVER NEVER be reliant on any other nation for a strategic resource.

Yes there are issues with Union Shops and their negative impact on prices. We have to find a way to alleviate that. There’s not question of that.

At the end of the day, we need to be employing U. S. Citizens to build our strategic resources.

This goes for shipbuilding yards as well.

At then end of Trump’s presidency, it’s my hope that there will be no illegal aliens allowed to work on any of our government / military sites.

I had heard that some of our shipyards were using them. If that’s wrong, this may not be as big an issues as I had thought.

[DoughtyOne]

BTW: Thank you. I appreciate your response.

[bert]

I’ve told you before....... patriotrism is the last refuge of a scoundrel

Patriotism is your only claim the fame

[buckalfa]

America can win any trade war given that the US is now energy self sufficient. The risks are Democrats taking control of Congress and China having the patience to outlast Trump and his policies.

[central_va]

Traitors hate to be called out. I get it. We can’t let you and your ilk go unanswered anymore. You all are much too dangerous.

Like communism and fascism in the last century, the threat of globalism will be eradicated this century too.

[Lumper20]

Look up the taxes Canada already has on US goods. Their idea of NAFTA was protecting every Canadian industry/product while screwing us. US Cheese has a 245% markup and US butter 298%. US grain and seed have other laws. US wine and spirits are marked up high and must be totally separated from Canadian. They have to have a dedicated cash register. Even T shirts from the US have an 18% tax. Yes, Clinton and Bush sure screwed us with NAFTA.

[bert]

Between the two of us, you are the only repeated violator of federal law.

[nicollo]

Zhang Fei: Unemployment was at 8% in 1930 when the Smoot–Hawley tariff was passed, but the new law failed to lower it. The rate jumped to 16% in 1931, and 25% in 1932–33.[27]

robroys woman: This also touches on the idea that, if the Great depression was a stick of dynamite, the crash of 1929 was when the fuse was lit. It actually went off in 1932.

A couple things:

- Unemployment spiked at 25% in 32-33, and fell gradually to just under 15% in 1936/37, the jumped back to 20% in '37/38.
- These numbers in no way reflect real employment, as employment rebounds were primarily through reduced work hours, part-time employment, and government jobs.
- The "Great Depression" is a completely unrelated event from the "Crash of 1929."
- The '29 Crash would have been one among many had not FDR's New Deal compacted it into a full-on, decade-long Depression.
- EVERYTHING Roosevelt did entrenched and prolonged the Depression.
- FDR may have alleviated the pain in many cases, but he CAUSED far more pain than he remedied.

Here for the real story by Walter E Williams: Great Myths of the Great Depression"

[Bulwyf]

Ya, NAFTA is a joke I agree.

I just hope Trudeau is brought down hard.

[econjack]

Much of the problems started with the end of WWII. We bombed the Japanese capital stock into the stone age, but then rebuilt it through various lend/lease programs. Result: The US has continued to use 1890’s technology to produce steel while others have modernized their plants resulting in lower costs. US modernization has been driven by union costs, and protective tariffs/quotas under earlier administrations have made it possible to continue to use outmoded facilities. Hopefully, this new round of tariffs won’t kill the incentive to modernize like it did in the past.

[DoughtyOne]

I hope that as well. We have responsibility to do what is right. This shouldn’t allow the idiots to game the day.

[TruthWillWin]

"Nafta = Giant Sucking Sound"

[JPJones]

So it’s safe to say Canada will be less and less an “ally” as China-rization continues...

Might as well start now with the tariffs.

[JPJones]

He WAS right.

I was completely fooled.

[jdsteel]

I agree. Negative effects from a trade war could be higher inflation, higher unemployment and weaker GDP.

The Fed, back in the bad old days of the early Obama administration, was fighting the serious issue of Deflation. Their goal was to get inflation up to 2%. We are at about 2.8%....no problem. It’s not high, it’s barely healthy. Unemployment? Gimme a break. We are setting records. Weaker GDP? The Atlanta Fed just raised their estimate of Q1 to 4.8%, up from 4.7%. That is NOT a typo. Thanks to Trumpanomics our country could not be in better shape for a trade fight to obtain fair and free trade.

[JPJones]

“I’ve told you before....... patriotrism is the last refuge of a scoundrel.”

And Globalism is the first.

[max americana]

Count on it. Canadians are inherently anti-American. Why do you think I came here? It’s hard for a piss poor neighbor when the other neighbor is powerful and rich. I was there for 6 months when they burned US flags every day before the invasion of Iraq 2003? Remember those good ole days?

[Lumper20]

Perot was right. I believe Ross would have won had he not pulled out. Seem to recall it was a threat to his wife?

[trebb]

The media repeat the fraudulent narrative about a trade war destroying the U.S. economy.

It is simply nonsense.

Yep - but try telling that to some of the folks who don't think they're paying more due to a Three Quarter Trillion (or so) deficit in trade but who are convinced they will go broke because of some leveraging tariffs designed for a long-term solution....