In “A User’s Guide to Restructuring the Global Trading System,” Stephan Miran makes a compelling case that — contrary to popular belief — tariffs can achieve a multitude of aims without causing inflation or market volatility. Miran begins his case by stating that the U.S. dollar is heavily and consistently overvalued because “dollar assets function … Read More
Even if Trump pushed ahead with proposals to impose a 60% tariff on goods from China, and trading partners around the world retaliated in kind, the disruption would likely only cause a 0.2% hit to the UK economy by 2028, economist Dan Hanson said in a note published Thursday. Read the article.
Steve Madden, a $3 billion shoe company, announced Thursday that it would rapidly halve its Chinese production to avoid Trump’s tariffs. Those plans have been in place for a long time, in anticipation of a Trump victory, according to Steve Madden’s CEO Edward Rosenfeld. “We have been planning for a potential scenario in which we … Read More
Trump’s first administration kept farmers onside with generous subsidies to offset lost U.S. sales to China from the trade war. Soybean farmers received $5.4 billion more in aid than they lost in price impact, a University of California-Davis study found. “People on the other side are saying ‘Oh my god, he’s going to impose these … Read More
Only weeks after the release of a new study quantifying the high cost of Buy American Act protectionism, the Biden administration has decided the law isn’t protectionist enough. At least that’s the logical inference of a recently proposed rule change, which would drastically reduce the number of items exempted from the law due to their … Read More
Chinese electric-car makers lost ground in Europe for a third straight month, in the latest sign that the move toward higher import tariffs is hurting sales. SAIC Motor Corp.’s MG unit led the drop, with a 42% slide in sales, according to Jato Dynamics, which also tracks the automotive market. The declines have persisted since … Read More
Back in the late 18th century, the Founding Father Alexander Hamilton helped put in place a set of policies designed to encourage U.S. industry and to promote economic development and innovation. That arrangement, which laid the groundwork for what became known as the “American System,” emerged in part as a counterbalance to British conceptions of … Read More
De minimis, a customs rule that allows for duty free shipment and minimal inspection if the overseas vendor claims the value is under $800, is a haven for contraband, whether it’s fake Nikes, childrens’ toys made of lead, or banned food products, Customs and Border Protect (CBP) admitted yet again. “We’ve encountered shipments that have … Read More
In a 1931 essay, Keynes argued for “import duties of 15 percent on all manufactured and semi-manufactured goods without exception, and of 5 percent on all foodstuffs and certain raw materials, whilst other raw materials would be exempt.” Keynes also saw no major impact of such a tariff policy on prices or inflation. Regarding his … Read More
When George Washington was President, consensus existed that tariffs should be used for both (1) federal revenue purposes, and also (2) to protect domestic production. This consensus was embodied in the first sentence of the first U.S. Tariff Act, passed on July 4, 1789. While the rough consensus existed, the precise extent to which tariffs … Read More
