Donald Trump has clamped down with his intention of imposing steel, aluminium, and possibly car and other tariffs on member countries of the European Union. Their political leaders have insisted that they will not be bullied or insulted by Trump and will therefore retaliate with counter-tariffs against a variety of American goods. Hello trade wars?
This is economic madness, with potentially very damaging trade wars. In spite of their rhetoric for decades, neither the U.S. nor the Europeans have actually practiced free trade; very much to the contrary, with some high import taxes on each other’s goods.
But whether it is Trump’s new tariffs or Europe’s counter ones, all that will happen is reduced freedom of choice for their respective citizens. The result: higher prices and fewer varieties for what they wish to buy.
The right response by both the U.S. and the European Union to the protectionist policies of the other is: free trade. The 19th century British economist, Henry Dunning MacLeod, said, if another country slaps your country on the face with a tariff, imposing a counter-tariff is then like slapping yourself on the other side of the face even harder.
You end up harming the citizens of your own country far more with such trade retaliation. Better for your country to lower or abolish its own tariffs and allow the offending country to harm itself, alone, rather than exacerbating the harm the other country has done to you by, then, harming yourself.
I believe it comes down to who benefits the most from a particular action. Trump has shown time and time again he doesn't actually care about the citizens of the US. He has said in his own words he doesn't care about the citizens of other countries.
So who benefits from his proposed tarrifs? Tariffs will put more money in his hands. He could use this money to boost his war machine. He could use them to push initiatives that will benefit his friends. His popularity could even go up if people believe these tarrifs will bring jobs to America. When that doesn't happen, he will happily push the blame to the EU or China. A free chance to villainize other countries, he loves that. Sure enough, people will believe him again.
I was hoping Trump would become the leader the US and the world needed. It seemed unlikely at the time. Now I feel silly for evening thinking he could make a real positive difference. I am now hoping he doesn't become the next Hitler.
Just google 'Is Trump the next Hitler', there are quite a few websites that show a shocking similarity between the two men.
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No, he is the Cheetos Mussolini but you are in the right neighbour.
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how?
TDS is a widespread affliction.
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This is just Trump playing hardball, it is good if he has you convinced he wants any sort of long term trade war, I expect the Europeans and Canadians and Chinese to capitulate in the near future.
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Trump is known for take concrete decision.
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