O.K., who left the closet door open and let Peter Navarro, the White House trade advisor, out? All I know is I woke up Friday morning to find Tariff Man, A.K.A. President Donald Trump had threatened the European Union with a 50% tariff on June 1st if they didn’t bend to his will. Added to this blast was a 25% tariff on any iPhones built outside the U.S. Apple has been moving production to India.
So much for the assurances uttered by those behind Trump’s first-term tax success; as I’ve pointed out, Larry Kudlow, Steve Moore, and Art Laffer led us to believe massive tariffs were only a tactic to obtain fairer trade terms. On “Liberation Day,” we saw high tariffs, only to be partially rolled back, but here we go again. How often do we hear the cry of “wolf” without any canine attack before we stop listening about wolves and anything else we hear from the Crier?
We may have legitimate complaints against our trading partners, and they have their concerns. But why not negotiate in good faith rather than making enemies out of friends and potential friends? Our relationship with Europe is already shaky over the Ukraine conflict and NATO. Do we need a more estrangement?
As the most populous nation on earth, India, as an ally, could help offset China. India is a rapidly developing nation willing to produce things we’ve been getting from China. We should be happy that Apple builds phones there rather than in China. No, Trump demands Apple make expensive phones in the U.S. India has every reason to feel stiffed by the U.S. Do we want to punish an American Tech company while we’re claiming that’s what the EU is doing? Why take business from India?
Trump claims he has all the cards, and everyone must give in to his desires. This blog is devoted to public policy, ours, and other nations. Looking at things from the perspective of different countries, Trump’s contention isn’t necessarily so.
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