“President Trump said he would impose about $60 billion worth of annual tariffs on Chinese imports on Thursday as the White House moved to punish China for what it says is a pattern of co-opting American technology and trade secrets and robbing companies of jobs and billions of dollars in revenue.
The measures come as the White House grants a long list of exemptions to American allies from steel and aluminum tariffs that go into effect on Friday, including the European Union, which has lobbied aggressively and publicly for relief from the trade action.
“The word that I want to use is reciprocal,” Mr. Trump said in announcing the tariffs in the Diplomatic Room of the White House. “If they charge us, we charge them the same thing.”
The China tariffs are his strongest trade action yet against a country he has branded an “economic enemy.” They fulfill one of his core campaign pledges, to demand more reciprocal deals with trading partners around the world.
But coupled with the administration’s decision to exempt the European Union, South Korea, Brazil, Canada, and Mexico from the tariffs on cheap metals, the action demonstrates how much Mr. Trump’s nationalist trade agenda is really targeted at a single country: China.”
Source: Trump Hits China With Trade Measures as White House Exempts Allies From Tariffs – The New York Times
Thomas Friedman is great in this column. He writes that China is a big problem, but the Trump steel tariff hurts our allies and not China. Then:
“So what would a smart American president do? First, he’d sign the Trans-Pacific Partnership trade accord. TPP eliminated as many as 18,000 tariffs on U.S. exports with the most dynamic economies in the Pacific and created a 12-nation trading bloc headed by the U.S. and focused on protecting what we do best — high-value-added manufacturing and intellectual property. Alas, Trump tore it up without reading it — one of the stupidest foreign policy acts ever. We Brexited Asia! China was not in TPP. It was a coalition built, in part, to pressure Beijing into fairer market access, by our rules. Trump just gave it up for free.
Once a smart president restored participation in TPP, he’d start secret trade talks with the Chinese — no need for anyone to lose face — and tell Beijing: “Since you like your trade rules so much, we’re going to copy them for your companies operating in America: 25 percent tariffs on your cars, and your tech companies that open here have to joint venture and share intellectual property with a U.S. partner — and store all their data on U.S. servers.” “
Source: Some Things Are True Even if Trump Believes Them – The New York Times
SANTIAGO, Chile — A trade pact originally conceived by the United States to counter China’s growing economic might in Asia now has a new target: President Trump’s embrace of protectionism.
A group of 11 nations — including major United States allies like Japan, Canada and Australia — signed a broad trade deal on Thursday that challenges Mr. Trump’s view of trade as a zero-sum game filled with winners and losers.
Covering 500 million people on either side of the Pacific Ocean, the pact represents a new vision for global trade as the United States threatens to impose steel and aluminum tariffs on even its closest friends and neighbors.
Mr. Trump withdrew the United States from an earlier version of the agreement, then known as the Trans-Pacific Partnership, a year ago as one of his first acts in office. It will undeniably be weaker without the participation of the world’s biggest economy, but the resuscitated deal serves as a powerful sign of how countries that have previously counted on American leadership are now forging ahead without it.
“Only free trade will contribute to inclusive growth of the world economy,” Taro Kono, Japan’s foreign minister, told a group of ministers from Southeast Asian countries in Tokyo on Thursday. “Protectionism isn’t a solution.”
Source: U.S. Allies Sign Sweeping Trade Deal in Challenge to Trump – The New York Times
Here is a comment I endorsed at the NYT.
I’m sure that most in the beef industry voted for Trump. Well guess what, More expensive steel is going to mean your costs are going up and the tariffs mean your income is going down. America First? Much more of this and it will be America Last.
WASHINGTON — President Trump is arriving at the World Economic Forum in Davos, Switzerland, to explain his “America First” approach at a moment when the world is moving ahead with a trade agenda that no longer revolves around the United States. The world marked a turning point in global trade on Tuesday, when 11 countries agreed to join the Trans-Pacific Partnership, announcing they had finalized the pact and expected to sign a deal on March 8 in Chile. It was a remarkable moment for a beleaguered agreemen
Source: As U.S. Trumpets ‘America First,’ Rest of the World Is Moving On – The New York Times
David Lindsay: Yes. Donald Trump, or Twitter Drumpf as I like to call him, is damaging the US in world trade, and no where more than in Asia, with his pulling out of the Transpacific Parntership.
Here is the top comment so far, I endorse:
“HO CHI MINH CITY, Vietnam — Do Thi Minh Hanh, a labor activist, had grown accustomed to being beaten, hospitalized and jailed for her work in a country where independent trade unions are banned.
So it gave her hope for a reprieve when Vietnam reached a trade deal with the United States and other countries that called for its members to bolster workers’ rights and protect independent unions.
That hope fizzled in late January, when President Trump pulled the United States out of the trade deal, the Trans-Pacific Partnership, with the stroke of a pen.“
The Vietnamese government will use this as an excuse to suppress the labor movement,” Ms. Hanh said. “They never wanted to have independent unions in Vietnam.” “
“Today, the United States and most developed countries have few tariffs, but some remain. The United States, for example, protects the domestic sugar market from lower-priced global suppliers and imposes tariffs on imported shoes, while Japan has steep surcharges on agricultural products including rice, beef and dairy. The pact was an effort to create a Pacific Rim free-trade zone.
Environmental, Labor and Intellectual Property Standards
United States negotiators stressed that the Pacific agreement sought to level the playing field by imposing rigorous labor and environmental standards on trading partners, and supervision of intellectual property rights.”