Trump is a free trader
> Trump also confirmed that he had told the leaders of Britain, France, Germany, Japan, Canada, and Italy that there should be no tariffs between them and the U.S. of any kind.
> Regarding the elimination of tariffs, Trump confirmed that he had suggested totally free trade among the G7 during the summit, explaining that, “Ultimately, that’s what you want. You want a tariff free. You want no barriers. And you want no subsidies. Because you have some cases where countries are subsidizing industries and that’s not fair.”
June 10th, 2018 12:50pm
Trade tariffs around the world have been dropping as a result of agreements like NAFTA. The average tariff on imported goods to the U.S. is 2.4 percent, while Canada and the European Union impose average tariffs of around 3 percent, according to the World Trade Organization. Manufacturing makes up only 10 percent of the U.S. economy.
June 10th, 2018 12:53pm
Apparently it was a surprise Trump wanted total free trade with zero tariffs, which is the "globalist" position. Some guy on his staff wrote a paper advocating it and so Trump showed up, passed out copies of the paper, and said they should do that. No one was prepared for that position. He then said "And since you are taxing milk, we're going to have a trade war."
They can't tell whether he is coming or going and that's how he likes it.
It's not a bad plan. We want massive tariffs on Chinese imports. But we don't buy anything from Europe anyway so who cares, yet they buy lots of American products and are super protectionist on agriculture so this is good for us. As for Canada it probably doesn't matter, they don't make much of anything but oil that we care about.
June 10th, 2018 1:10pm
Why do we want massive tariffs on Chinese imports?
June 10th, 2018 1:15pm
Zero tariffs favour the most efficient/productive countries.
Trump knows the US is the most efficient in the G7.
He can call for zero tariffs within the G7 knowing that:
If he gets it, the US wins.
If he doesn't then he has weakened the stance of all the so-called pro-globalists who know that genuinely going down that route would be hugely unpopular with large lobbies in their own countries.
Grumpy Old Git
June 10th, 2018 1:27pm
"violating WTO rules will crash the world economy" --- WTO
After reaching 3.1 percent in both 2017 and 2018, global growth is expected to decelerate over the next two years as global slack dissipates, major central banks remove policy accommodation, and the recovery in commodity exporters matures. Amid moderating international trade and tightening global financing conditions, growth in emerging market and developing economies (EMDEs) is projected to plateau, reaching 4.7 percent in 2019 and 2020, up from 4.5 percent in 2018.
June 10th, 2018 1:55pm
"the so-called pro-globalists know that genuinely going down that route would be hugely unpopular with large lobbies in their own countries"
Trump's guy showed him the numbers. He's calling the free trade bluff. Nothing to lose. Either kill globalization or *fully* embrace it. With the inefficient labor rights oriented G6 at least that is!
With China and the third world where there are no rights it's a different story. We don't want globalization with those guys.
June 10th, 2018 2:25pm
One of the things Trump points out is that the US has accepted bad deals and is seen as the world's piggy bank, and also world's policeman.
US administrations have been absolute SUCKERS for fleecing for decades. They try to be nice and friends. Other countries represent the best interests of THEIR people, not OUR best interests. But we have leaders that refuse to represent US and OUR interests.
Look at it this way. You are buying a house. You have a real estate agent. So does the seller. Do you want YOUR real estate agent to try to be "nice" and represent the interests of the seller instead of yours?
That's how the US has been run for the last century and it's long past time to stop.
Democrats and Never-Trump Republicrats like McCain will NEVER comprehend this. For them they like to buy fake popularity through huge giveaways of OUR property.
June 10th, 2018 2:28pm
"Protectionist threats cast a dark cloud over future growth.
If these threats lead to trade wars, the consequences
could be devastating. Even if they do not,
uncertainty about economic policy dampens
Secondly, a credit event in a
major emerging market or a sudden tightening of
monetary policy in the United States leading to a
spike in interest rates could roil financial markets,
causing a slowdown especially in highly indebted
From the 1975 oil crisis, to the Latin
American debt crisis of the 1980s, to the Asian
financial crisis of the 1990s, to the 2007-09
global financial crisis, there has been a financial
market crisis every ten years or so. It is now ten
years since the last crisis.
Moreover, as the analytical sections of the report
show, increasing corporate debt in some
emerging market economies has left them
especially vulnerable to interest rate and exchange
rate shocks. And the prospects for commodity
exporters will be limited as the major commodity
-importing countries, especially China, shift their
demand away from oil and other commodities."
June 10th, 2018 3:13pm
> Some guy on his staff wrote a paper advocating it
Do have a link for the paper? I agree that the globalists are eating their cake and having it. An actual zero tariff world is a scenario I'd like to read about.
June 10th, 2018 4:50pm
The paper isn't published. It's existence was mentioned in one of the articles about the G7 meeting.
June 10th, 2018 5:05pm
June 10th, 2018 5:11pm
Thanks. Argumetn seems a bit contradictory, we need higher tariffs to promote free trade, but it's only a very short article and perhaps that is not what he is saying. I can chase that up later.
June 10th, 2018 5:29pm
His position is I'm a globalist free trader, Trump is anti-globalist and favors tariffs. But I've explained to him that the G7 free trade we have now is not free trade, it's the US getting reamed since the others can import to US with no tariff, but they tax the hell out of our exports to them. So here's the deal guys that both me and Trump agree on. Let's have real free trade, meaning we both pay no tariffs. Or the alternative is I'll tell Trump, sure, lets tariff the fuck out of absolutely everything and bring trade to a standstill. Oh and also, if you guys don't want to trade with us, Russia and North Korea are both VERY keen to do so.
June 10th, 2018 6:03pm
We got NORTH KOREA. Take that Trudeau!
June 10th, 2018 7:32pm