On The G7, Tariffs and Trade, from Karl Denninger in the US.
Macron and Trudeau will sanctimoniously decry the supposed death of free trade at the hand of Trump. In reality, they are defending a managed trade system that holds the U.S. at a disadvantage.
All of the other G-7 countries have higher tariffs on the United States than we have on them.
Generally-speaking, the US has low to zero tariffs on darn near everyone — well, we did until recently. That’s changing, and it’s changing because other nations won’t drop their tariffs.
EU nations generally levy a 10% tariff on US cars. Ours is 2.5%. Explain to me why we should allow that, when the entirety of the EU is considered a first-world nation and needs no special protection.
Canada tariffs a wide variety of agricultural products, from dairy to beef. Some of the tariffs are outright confiscatory, including dairy at more than 200%. Please explain to me how this is “free trade” and why Canada should have zero (or near-zero) tariffs on steel they wish to export into the US — especially when some of it is being diverted from China to evade anti-dumping penalties we leveled against them.
Mexico has zero room to complain. Well, except that their $3/hour wages to build cars are under threat. Why do we allow that, if Mexico is an alleged first-world nation? Isn’t the truth that they’re not — they’re a narco-terrorist wonderland that has exported unskilled labor and lawless gang members to the United States for decades, yet expects us to do nothing in reply? Indeed they give safe passage to people from all over Central America through their nation illegally to get to the US, in direct violation of International standards which say that a refugee must apply for asylum in the first safe nation they reach.