China’s plan to levy a 25 percent tariff on imports of U.S. soybeans may come as something of a surprise to most Americans. But to a professor of agricultural economics who studies international commodity markets for a living, this was not at all unexpected. Even before the conclusion of the 2016 presidential race, trade … Continue reading Why China’s soybean tariffs matter
Category: Trade
I explained last month that the World Trade Organization’s dispute-resolution mechanism is the best way of discouraging China from short-sighted mercantilist and cronyist trade policies. The Trump Administration, though, thinks that the best response to bad Chinese trade policy is to adopt bad American trade policy. In this interview, I fret that tit-for-tax protectionism is bad, and might even … Continue reading Trump’s Failing Grade on Trade Threatens His Overall GPA on Economic Policy
President Donald Trump seems to be on a tariff-setting tear in recent weeks. It all began on March 8, when the president finally followed through on an almost year-old threat to restrict imports of foreign steel. The administration slapped a 25 percent tariff on the metal, while also putting a 10 percent duty on … Continue reading George W. Bush tried steel tariffs. It didn’t work
A bilateral trade war appears to be in full swing. China and the U.S. are trading targeted tariffs on each others’ goods. Threats of retaliation by key U.S. allies like Canada and the European Union prompted President Donald Trump to exempt a large group of countries from the steel and aluminum duties it announced … Continue reading Trade wars are good’? 3 past conflicts tell a very different story
“America is open for business.” In his measured speech to the World Economic Forum, President Donald Trump highlighted his administration’s economic reforms and pointed to the positive trends in economic indicators. His clear message was: “bring your investment and jobs to the U.S.” Trump has certainly done much to improve the economy, but he could … Continue reading To further boost the economy, Trump must do this
The European Union has finally put an end to nearly 50-years of quotas on sugar prices. Despite the seemingly good news, the measure is overshadowed by the fact that the EU not only maintains large tariffs on sugar imports, it also recently announced that it will probably continue backdoor-protectionism regardless. 50 Years of Market Distortion … Continue reading The EU Is Still Sweet on Protectionism
In 1979, then-California Gov. Ronald Reagan launched his presidential campaign saying, “A developing closeness among Canada, Mexico, and the United States—a North American accord—would permit achievement of that potential in each country beyond that which I believe any of them—strong as they are—could accomplish in the absence of such cooperation. “In fact, the key to our … Continue reading Opposing free trade is a leftist trait
As the United States, Canada, and Mexico prepare for next month’s North American Free Trade Agreement negotiations, several environmental and labor groups have slammed the agreement, calling for an overhaul of NAFTA priorities. However, many environmental groups continue to attack the trade agreement. Environmental groups claim that NAFTA has contributed to pollution in member countries. … Continue reading Environmentalists and Union Bosses Hate NAFTA. Here’s Why They’re Wrong.
Washington, D.C. – Following today’s announcement that the U.S. and China have finalized an agreement allowing for American beef exports, House Agriculture Committee Chairman K. Michael Conaway (TX-11) and Livestock and Foreign Agriculture Subcommittee Chairman David Rouzer (NC-07) made the below comments: “As one of the world's largest importers of beef, China has long-been an … Continue reading $2.6 billion deal means more Texas beef going to China
When we discuss international trade and balance of payments, there are two types of accounts. There is the current account, which includes goods and services imported and exported and receives the most political attention. In 2016, the American people imported $479 billion worth of goods and services from Chinese producers, and we sold $170 billion … Continue reading US Trade Deficit With China Is Not a Big Problem. Here’s Why.
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