This special Mother’s Day episode features each host talking about their Mother’s Day plans, their families, and a political issue that’s been on each of their minds this week.
by D.J. McGuire
One of the more maddening defenses of Trump’s protectionism is the insistence that his tariffs and trade wars are “temporary.” Give him the chance, his defenders say, and he’ll get “better deals” that remove tariffs all around.
This week’s Bloombergrevelation about trade talks with the Chinese Communist Party completely destroyed that argument.
China is considering a U.S. request to shift some tariffs on key agricultural goods to other products so the Trump administration can sell any eventual trade deal as a win for farmers ahead of the 2020 election, people familiar with the situation said.
The step would involve China moving retaliatory duties it imposed startinglast July on $50 billion worth of U.S. goods to non-agricultural imports, said the people, who asked not to be identified because the discussions were private. The shift is because the U.S. doesn’t intend to lift its own duties on $50 billion of Chinese imports even if an agreement to resolve the trade war between the two nations is reached, one the people said.
Let’s examine the full implications of this nonsense. First, it’s abundantly clear that Trump has no interest in ever removing the tariffs he has imposed. This should surprise no one. Donald Trump was President of the United States for less than an hourwhen, in his own inaugural, he insisted, “Protection will lead to great prosperity and strength.” Within fifteen months, he had cleared out the bureaucratic resistance to his dangerous impulse and the tariff spree began. The idea that he would ever get rid of them was foolhardy.
The repercussions of this are now beginning to be seen, in geopolitics as much as economics. The Administration that touted itself as being able and willing to “stand up” to Beijing has been reduced to begging the CCP to switch its tariffs to less visible products.
Meanwhile, the regime gets a free pass on threatening Taiwan, strong-arming its neighbors in the South China Sea, using Kim Jong-un as a foil, and persecuting hundreds of thousands of Uighur Muslims in occupied East Turkestan.
The president who as a candidate railed against the rest of the world “laughing at us” is only spared hearing side-splitting gales from Zhongnanhai due to the distance of the Pacific Ocean.
The rest of the world is taking notice and will act accordingly. Those hoping for removal of tariffs now must accept the fact that they’re not going anywhere. The world will be a poorer place, with higher prices and lower production across countries and sectors worldwide.
Economically, America has been shielded by timing: we’re in the late stages of a long economic recovery temporarily buttressed by a Keynesian sugar high disguised as a “supply-side” tax cut. That can’t last forever. The economic reckoning will be painful. The geopolitical effects will as well.
The one silver lining is this: no one can credibly claim Trump’s endgame is about reducing or eliminating tariffs. Anyone who still tries peddling that nonsense is gaslighting everyone in the conversation, themselves included.
by D.J. McGuire
Defenders of Donald Trump are crowing about his “deal” with the EU to hold off future tariff hikes and discuss reducing trade barriers in certain manufacturing goods. Never have so many offered so much praise for so little.
Scott Lincicome of the CATO Institute examined the joint statement on this Twitter thread. To make a long story short, no actual reductions in tariffs were agreed. Instead, the US and the EU have agreed to start talking about future reductions in tariffs. So none of Trump’s tariffs were reversed; nor were any of the EU’s retaliation tariffs. As Lincicome also notes, even the apparent promise to rule out future tariffs against each other is “vague.”
Still, a future trade liberalization agreement would be helpful, yes?
Actually, yes it would. That’s not the problem here.
What is the problem was that talks on US-EU trade liberalization had already been well under way during the Obama Administration. It was known as the Transatlantic Trade and Investment Partnership. Negotiations hadn’t been completed, of course, and it was controversial, but it was also an established framework to discuss freer trade between America and Europe that was far beyond merely “non-auto industrial goods.”
What happened to the TTIP? Donald Trump happened to the TTIP. He railed against it as a candidate, and his election killed the negotiations.
Over a year and a half later, we’re starting all over again with a much more cramped potential agreement, with Trump’s harmful tariffs still in place.
We also have to consider how Trump will react to the wheezing, dysfunctional nature of negotiating with the EU (although that’s the EU’s fault, not his).
This is hardly worth celebrating. At best, we should be relieved that, for now, US-EU trade relations won’t get worse. However, the damage to our economy from the tariffs is not only done, but is still happening as the tariff hikes themselves didn’t go away.
It’s a typical Trump “deal” – nothing of substance behind a list of platitudes not worth the bandwith on which they’re virtually printed. That Trump and his supporters are touting it so loudly is a sign of their desperation. In reality, nothing has been accomplished here.
D.J. McGuire – a self-described “progressive conservative” – has been part of the More Perfect Union Podcast since 2015
This episode of The More Perfect Union podcast covers the Stormy Daniels “60 Minutes” interivew, the March For Our Lives, John Bolton, Trump’s congratulatory call to Putin, China tariffs, and Joe Biden’s ominous prediction for 2020. It’s real debate without the hate…and with the laughs.
Episode 70 of The More Perfect Union podcast series covers Ivanka Trump’s tough Jet Blue flight, her dad’s tough talk on nukes and tariffs, President Obama’s tough love for Bibi Netanyahu, and the MPU gang’s new year’s resolutions after a very tough political year.
Like what you heard? Subscribe on iTunes and don’t miss a podcast! And don’t forget to Rate and Review us on iTunes.
If you like talking politics, join us on Facebook in OPEN FIRE, our political group where you can discuss news and politics with D.J., Greg, Kevin, Emily, Cliff, Rebekah, and lots of other smart, fun people.