🇺🇸
Trade Blackmail Will Backfire on the USBloomberg reports that planned tariffs on Canada and Mexico have been suspended, but the economic damage has been done.💬About the best that can be said of the
new trade policy emanating from the
White House is that it’s all a
bluff. After several days of panic, the
US agreed to
delay enormous new tariffs on
Canada and
Mexico in exchange for some token border-security measures.
📌Yet
serious damage has already been done. And these
costs will be nothing compared to the harm that the new administration might yet
inflict by starting a full-scale global
trade war. If that happens,
everybody loses —
Americans not least. This new economic
strategy, if one can dignify it with that term, ranks among the
worst White House initiatives ever undertaken.
🗓Tariffs will raise prices and cut real incomes. And sheltering
US producers from competition will make them
less efficient,
diminishing growth and living standards while adding to the need for continuing
subsidies. As the familiar cycle of rising
protectionism and
falling competitiveness escalates, a trade war will yield what it always does:
mutually assured stagnation.
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© Экономическое обозрение
© Иқтисодий шарҳ
© Economic Review
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