Fiscal Policy & Regulation

I can't believe that I missed this earlier - a great BBC piece looking at the global impact of US tariffs - which highlights the fact that vast swathes of the global economy have been affected by Us protectionism.

This BBC article details where the burden of the tariffs falls - in dollar terms, it's actually largest on Canada, as well as the sectors of industry affected. 

More on the US-China trade war: no immediate end in sight.

Round three, or is it four, I've lost count/interest.

The US is reported to be thinking about another $200bn worth of tariffs and the President seems convinced he's winning the trade war. I have to say, I'm underwhelmed by the size of the 'improvement' in the US trade deficit and the 'remarkable' rate of both reshoring and job creation.

It would be interesting to hear the President quantify the gains from his trade policy. 

I'm not sure what round it is, but the Chinese will retaliate if the US imposes yet more tariffs on Chinese goods.

And remember, the President himself said that a trade war was "easy to win".

Quite what anonymous senior White House officials make of this, I do not know, although they appear to want to sign letters that have been drafted for them by the President's staff in droves.

An aside - what markets is the US targeting with its latest tariffs on Chinese goods and services? 

The Guardian investigates...

The basics on the trade war. In the Guardian.

Here we go: President Trump is proposing to introduce an additional £200bn worth of tariffs, in attempting to force China to "change its practices".

Strong-arm tactics: but what are the likely distributional effects of this? And on balance, is this a good thing for the global economy, or the economies of either the US or China?

"Beijing (AFP) - China has criticised new United States anti-dumping duties on aluminium foil, saying it was "extremely dissatisfied" with the new measures, just days before President Trump visits Beijing."

The ongoing trade war between the US and China takes yet another turn with China reducing the tariff on American cars to 15%, the same tariff as is levied on car imports from other nations.

"More, more, more...how do you like it, how do you like it", President Xi, might be President Trump's opening gambit at this week's G20 summit in Buenos Aires.

The President is threatening more tariffs on Chinese goods, if the Chinese fail to (a) abandon their 'unfair' trade practices (b) submit to his bullying (c) all of the above.

But are these tariffs self-defeating? The President might ask GM

It is also rumoured that, for a change, the police in the host city are looking forward to the G20 meeting. For them it represents a quiet weekend, given that River Plate and Boca Juniors aren't playing in  the Copa Libertadores.

The much-heralded next round of tariffs has been imposed: watch this space.

Here we go again!

Although I'm grateful that the President says nothing more complex than "ready to go". My Twitter feed has just suggested that he's got enough difficulty with longer words, like 'anonymous'.

Retaliation - the name of the game as the ongoing trade war develops.

Mohammed El-Erian tries to find a silver lining to the current trade war, arguing that it might permit a global realignment, and modernisation of outdated trade practices, and potential benefits in future.

I hope that he's right - I cant help thinking that the President's brain is incapable of strategizing in this fashion. But then again, he does suggest it could be "Reagan moment" - perhaps suggesting that the unintended effects" of the decisions taken by those of limited intellectual ability can occasionally have positive ramifications. 

After the phony war, the real thing begins, US tariffs on China take effect today. Let battle commence.

Easy to win - and listening to the Today programme earlier - harder for the average American to understand. Apparently, in their eyes, America has been taken advantage of for years. Try telling that to developing world farmers who've seen US agriculture protected by sizeable tariffs.

The new normal. Another day, another set of tariffs.

Depressing, isn't it. And poor economics too.