Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

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Separatist
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Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

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Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs
http://www.economicpolicyjournal.com/20 ... inine.html

The Trump administration, led by the economically illiterate Donald Trump, is about to announce its first tariffs, which are likely to be the first of many, but these tariffs are whoppers.

U.S. Commerce Secretary Wilbur Ross said on Monday his agency will impose new anti-subsidy tariffs averaging 20 percent on Canadian softwood lumber imports.

Speaking to Reuters by phone a day ahead of the expected announcement, Ross said that the duties would affect $5 billion worth of softwood lumber imports from Canada.

"It's about 31.5 percent of the total U.S. market, so it's a pretty big deal in terms of the Canadian relationship," he said.

A Commerce Department fact sheet on the pending announcement seen by Reuters shows that
West Fraser Mills will pay the highest duties at 24.12 percent, followed by Canfor Corp at 20.26 percent.

Resolute FP Canada Ltd will pay a 12.82 percent duty, while Tolko Marketing and Sales and Tolko Industries will pay a 19.50 percent duty and J.D. Irving Ltd, will pay 3.02 percent.

All other Canadian producers face a 19.88 percent duty, according to the document.

The tariffs will also be retroactive!

The preliminary determination directs U.S. Customs and Border Protection to require cash deposits for the duties on all new imports as well as softwood products imported over the past 90 days.

To remain in effect, however, the duties need to be finalized by Commerce and then confirmed by the U.S. International Trade Commission after an investigation that includes testimony from both sides.

Softwood comes from gymnosperm trees, usually evergreen conifers, like pine or spruce.

According to Diffen, about 80% of all timber comes from softwood. Softwoods have a wide range of applications and are found in building components (e.g., windows, doors), furniture, medium-density fiberboard (MDF), paper, Christmas trees, and much more.

As Don Boudreaux has explained, a country that is subsidizing an industry is on a daily basis bazookaing its own people. To respond to this by instituting tariffs on Americans, so that they can't gain the benefit of the lower subsidized price, is to bazooka the American people in response.

How this will all play out for the consumer is complex. It likely to result to some degree in higher prices for softwood coming from Canada. It also likely to result in less softwood being imported from Canada into the United States, which will put upward price pressure on American produced softwood.

The crony US limber association is giddy and wants more, "We are pleased with this initial outcome and are looking forward to the (next, anti-dumping) duties expected to be announced June 23,'' said Zoltan van Heyningen of the U.S. Lumber Coalition.

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Separatist
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

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Trudeau Blasts Trump on Newly Imposed Trade Tariffs
http://www.economicpolicyjournal.com/20 ... posed.html
http://globalnews.ca/news/3404487/justi ... mp-lumber/
Canadian Prime Minister Justin Trudeau and President Donald Trump spoke over the telephone Tuesday evening to discuss the brewing trade war between their two countries.

Trudeau told Trump that “Canada will vigorously defend the interests of the Canadian softwood lumber industry,” according to a release from his office.

On Monday, Trump announced the United States would impose tariffs of up to 24 per cent on Canadian softwood lumber, a move that affects some $5.66 billion worth of imports of the construction material.

Anti-dumping duties to be announced June 23 could raise the total to as much as 30 to 35 per cent.

The prime minister is said to have “refuted the baseless allegations by the U.S. Department of Commerce and the decision to impose unfair duties,” during his conversation with Trump, according to the statement.

Reporters asked Trump Tuesday if he was fearful of a trade dispute with Canada. He responded by once again displaying his economic ignorance on trade matters..

“No, not at all,” he responded. “They have a tremendous surplus with the United States. Whenever they have a surplus, I have no fear.”


“The prime minister and the president also discussed Canada-U.S. trade in dairy products, trade which heavily favours the U.S.: Canada imports over $550 million of dairy products from the U.S., but exports just over $110 million to the U.S.,” the statement from the PMO said. Trudeau also let Trump know that he would continue to defend Canada’s dairy sector as well.

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David13
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

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Separatist
I understand that if you were president the world would turn to unicorns and rainbows, crime would disappear and poverty would evaporate and there'd be peace and harmony everywhere and you and Trudeau would dance and sing together while holding hand, but on the other hand ...
Have you given up on the issue of sin? And racism?
dc

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Separatist
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

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David13, being against tariffs = unicorns and rainbows? If you can extend your mind a bit, perhaps it is being for the common man, and against the crony rent seekers.

When have you given up on the principles of liberty? Is it because an (R) is in office? Chameleon liberty lovers are an interesting lot.

Not sure I get the sin and racism quip. Perhaps I missed the punchline and you could explain.

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Robin Hood
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

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I don't know enough about this issue to make any specific points regarding timber prices/trade etc.
However, I would ask why on earth the US is importing timber from Canada, or anywhere else for that matter?
Surely, US forests are vast and should provide all of America's needs.

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David13
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

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Robin Hood wrote: April 26th, 2017, 8:29 am I don't know enough about this issue to make any specific points regarding timber prices/trade etc.
However, I would ask why on earth the US is importing timber from Canada, or anywhere else for that matter?
Surely, US forests are vast and should provide all of America's needs.
Somewhat of an interesting question.
Many years ago the leftists adopted a persona, that of "treehugger" wherein they determined that they would allow no tree in the USA to be cut down. That mentality, or insanity has infested much of the country. Much of the forests have been nationalized, and turned into preserves, etc. So wood would have to be imported.
It's like the no drilling for oil in the US, so we depend on foreign oil.
(Some logging and some oil is done here).
A lot of the US forests were totally cut down many years ago (Michigan, e.g.). There are many tree farms here. But that takes time.
Exotic woods like teak and mahogany were never grown here and had always to be imported.
So, they import wood.
dc

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Separatist
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

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Robin Hood wrote: April 26th, 2017, 8:29 am However, I would ask why on earth the US is importing timber from Canada, or anywhere else for that matter?
Surely, US forests are vast and should provide all of America's needs.
Cheaper. Comparative Advantage. Why does anyone trade at all?

This article from 2002 could be written today. The principles are timeless:

https://mises.org/library/lumber-29-percent-tax
Lumber: A 29 Percent Tax

"If the protectionists had the power to give legal effect to their convictions, they would reduce all men to the snail’s life of utter isolation." --Frederic Bastiat

Count the term "free trade" as another casualty of political rhetoric and chicanery. Free trade no longer seems to mean what the words appear to strongly imply--which is a kind of trade where neither party is interfered with by government meddling.

In a classic Orwellian "newspeak" twist, the current administration calls itself in favor of free trade and declares itself for open markets. What this has come to mean, however, is trade on the government’s terms, with protections in select industries where government feels they are needed.

First, we see new protections implemented to protect the steel industry from foreign competition. It is ironic that America is often derided by some critics for its rough-and-tumble capitalism--hence, these critics maintain, the need for government interventions of every kind.

Reality, however, is quite different; America’s brand of capitalism seems to enjoy freshening the wells of failure. In America, if you’re big enough and rich enough, or if you have a world-class lobbying team, you can get the American taxpayer to underwrite your failures.

Is this the beginning a new political trend, or just more of the same?

American softwood lumber producers are the latest sob story. They have sought and received relief from the nanny state in the form of new tariffs. As The Washington Post reports, "The U.S. Department of Commerce today set duties as high as 29% on many shipments of softwood lumber from Canada." If Canadian lumber cost $100 yesterday, it costs $129 today. If you’re an American producer of softwood lumber, you are clicking your heels.

Why do we need to give this gift to U.S. producers? "The U.S. government has accused Canada of ‘dumping’ subsidized softwood lumber in the United States," the Post reports, "that is, selling it at illegally low prices." Ah, so they are giving American consumers softwood lumber at too low a price. What a crime; we consumers should all be so lucky to have such crimes perpetuated against us.

Canada, for its part, denies that it subsidizes its exports. Really, it shouldn’t matter whether it does or not. Let us say that the Canadian government is subsidizing lumber exported to the U.S. Think about what that would mean. It would mean, essentially, that the Canadian government is taking its taxpayers’ money and giving it to American purchasers of lumber. Canadian taxpayers, it seems, would be a no brighter bunch than their kin to the south.

American producers say these subsidies are unfair, because the playing field is not level, so to speak. Here we have our fellow Americans--friends, family, countryman--working diligently to produce lumber, and here comes Canadian competition with pockets allegedly lined with subsidies. If true, these subsidies on lumber would give Canadian companies quite a cost edge.

From an American producer's point of view, it does seem unfair. But guess what? Life is not fair. The playing field is never level. I suppose it also unfair that the Canadians have more trees than we Americans do. In a similar vein, it may also seem unfair that the New York Yankees spend so much more money than the Kansas City Royals.

Is it now part of the U.S. government’s role to mitigate envy and satisfy petty jealousies, like a mother watching over competing 2-year-olds? Is it now part of a new American creed to wipe out unfairness? One can see the headlines now. It would be called the War on Unfairness and would take its place among other "successful" campaigns, such as the War on Poverty, the War on Drugs, and the War Against Terrorism.

Canadian exporters ship $6 billion worth of softwood lumber to America annually, the Post reports. Lumber is obviously important to homebuilders, and this new duty will be collected at their expense. Is it fair that homebuilders--and ultimately homeowners--pay more than they would otherwise have to pay for lumber? These homebuilders and homeowners, as a group, probably love their country just as much as the next guy, but, for whatever reason, they preferred to get their lumber from the great north country.

U.S. mills say that they are being put out of business by Canada’s low-priced goods. The loss of U.S. mills will mean the loss of American jobs--which is always painful for those whose jobs are being lost.

Perspective is important in these kinds of matters. Job losses are part of the healthy transitions that mark any market economy. Healthy growing economies destroy jobs, but they also create many more jobs. America has lost thousands of farm jobs and manufacturing jobs over the last hundred years, for example. But, the American economy has also created jobs in industries that could barely be imagined decades ago. If we had adopted strict protectionist measures aimed at preserving current jobs at the dawning of the Republic, America would never have become more than a poor agrarian society.

While low-priced Canadian lumber will hurt and shrink the U.S. lumber industry, others will certainly gain. Among those that gain are the homebuilders and homeowners, and any other purchasers of lumber. Also, consider that there are other industries where Americans compete comparatively better than international firms. Investment and people will naturally flow to those markets.

The mix of American businesses is constantly evolving and changing. Businesses fail all the time, for a wide variety of reasons. Conversely, new businesses are started, and smaller successful businesses can grow into much larger ones in the future. The fortunes of businesses shift, when left unfettered, in response to consumer demands. With each passing bailout and protectionist measure, more and more of the edge of American industry is dulled.

What incentives do lumber producers have to make those difficult and tough decisions that businessmen must make in serving the unyielding demands of consumers? They don’t have to be the best; they don’t even have to be particularly good. Let us assume that you were playing poker and knew that if you should run a little low on chips, the house would come by and give you more to stay in the game. Wouldn’t this affect how you play? Sure, you would still try to win, but the pain of failure would have been blunted. You would probably play in more hands than you should and take chances you might not otherwise have taken. You would probably spend more time and effort making sure that you had a cozy relationship with the house manager. Why should it be any different for lumber, or steel, for that matter?

On matters of trade, no more pleasurable reading can be found than the wonderful essays in Frederic Bastiat’s book Economic Sophisms. Bastiat’s great merit is his focus on looking at economic questions from the point of view of the consumer. With just this approach, great clarity is achieved in understanding international trade. Bastiat’s maxims still speak to us as clearly and correctly as they did over 150 years ago.

Bastiat observed that "When a product--coal, iron, wheat, or textiles--comes to us from abroad, and when we can acquire it for less labor than if we produced it ourselves, the difference is a gratuitous gift that is conferred upon us." It is such a commonsense observation that one is inclined to take it for granted, except that so many people still refuse to grasp it.

Bastiat wrote that "consumption is the end, the final cause, of all economic phenomena, and it is consequently in consumption their ultimate and definitive justification is to be found." Bastiat believed that all of the economic sophisms he wrote about had a common root in their "disregard of men’s interests in their capacity as consumers."

Using Bastiat’s approach of looking at the consumer, you see very clearly how absurd the whole question of tariffs really is. Tariffs are merely, in Bastiat’s words, "the sacrifice of the consumer for the producer." There is no scenario in which consumers gain when tariffs and protectionist measures are used.

In summary, these new duties on lumber are simply bad for American consumers. They amount to a 29-percent tax on lumber. These duties may save the American lumber industry. On the other hand, these producers, having enjoyed the benefits of their lobbying efforts, will not soon wean themselves of this protection. They are now dependents, and the American taxpayer is being forced to support them.

Fiannan
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

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What if the USA required all products entering the nation for sale to insure that workers were given comparable conditions in their plants as American workers are given under law as well as prove they are conforming to US environmental regulations?

Silver
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

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Fiannan wrote: April 26th, 2017, 10:30 am What if the USA required all products entering the nation for sale to insure that workers were given comparable conditions in their plants as American workers are given under law as well as prove they are conforming to US environmental regulations?
What if your neighbors required you to raise your children the same way they're raising theirs?

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nightlight
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

Post by nightlight »

Separatist
Are you a leftist?

Silver
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

Post by Silver »

NIGHTLIGHT wrote: April 26th, 2017, 11:15 am Separatist
Are you a leftist?
https://mises.org/library/what-classical-liberalism

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nightlight
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

Post by nightlight »

Silver wrote: April 26th, 2017, 11:22 am
NIGHTLIGHT wrote: April 26th, 2017, 11:15 am Separatist
Are you a leftist?
https://mises.org/library/what-classical-liberalism

Is this you trying to rationalize your leftist tendencies????

Silver
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

Post by Silver »

NIGHTLIGHT wrote: April 26th, 2017, 11:30 am
Silver wrote: April 26th, 2017, 11:22 am
NIGHTLIGHT wrote: April 26th, 2017, 11:15 am Separatist
Are you a leftist?
https://mises.org/library/what-classical-liberalism

Is this you trying to rationalize your leftist tendencies????
I can't help you if you refuse to be educated. Do you know who Ezra Taft Benson is? Do you know about the John Birch Society?

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Separatist
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

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NIGHTLIGHT wrote: April 26th, 2017, 11:15 am Separatist
Are you a leftist?
Interesting train of thought you have going. Define leftist.

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nightlight
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

Post by nightlight »

Silver wrote: April 26th, 2017, 11:33 am
NIGHTLIGHT wrote: April 26th, 2017, 11:30 am
Silver wrote: April 26th, 2017, 11:22 am
NIGHTLIGHT wrote: April 26th, 2017, 11:15 am Separatist
Are you a leftist?
https://mises.org/library/what-classical-liberalism

Is this you trying to rationalize your leftist tendencies????
I can't help you if you refuse to be educated. Do you know who Ezra Taft Benson is? Do you know about the John Birch Society?
I'm talking about modern term for leftist.

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nightlight
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

Post by nightlight »

Separatist wrote: April 26th, 2017, 11:39 am
NIGHTLIGHT wrote: April 26th, 2017, 11:15 am Separatist
Are you a leftist?
Interesting train of thought you have going. Define leftist.
Yes or no? It's not complicated standard modern current view on political spectrum

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nightlight
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

Post by nightlight »

Silver wrote: April 26th, 2017, 11:33 am
NIGHTLIGHT wrote: April 26th, 2017, 11:30 am
Silver wrote: April 26th, 2017, 11:22 am
NIGHTLIGHT wrote: April 26th, 2017, 11:15 am Separatist
Are you a leftist?
https://mises.org/library/what-classical-liberalism

Is this you trying to rationalize your leftist tendencies????
I can't help you if you refuse to be educated. Do you know who Ezra Taft Benson is? Do you know about the John Birch Society?
Nobody who identifies himself as a leftist today fits the standard of the link you posted you know that I'm talking about modern liberals. don't complicate plain things it's Unbecoming

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Separatist
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

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I believe in free unfettered trade. Define me as you wish.

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Separatist
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

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Fiannan wrote: April 26th, 2017, 10:30 am What if the USA required all products entering the nation for sale to insure that workers were given comparable conditions in their plants as American workers are given under law as well as prove they are conforming to US environmental regulations?
Do you believe in purposely lining the pockets of the few at the expense of the many?

Silver
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

Post by Silver »

NIGHTLIGHT wrote: April 26th, 2017, 11:53 am
Silver wrote: April 26th, 2017, 11:33 am
NIGHTLIGHT wrote: April 26th, 2017, 11:30 am

Is this you trying to rationalize your leftist tendencies????
I can't help you if you refuse to be educated. Do you know who Ezra Taft Benson is? Do you know about the John Birch Society?
Nobody who identifies himself as a leftist today fits the standard of the link you posted you know that I'm talking about modern liberals. don't complicate plain things it's Unbecoming
I guess you told me.

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nightlight
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

Post by nightlight »

Silver wrote: April 26th, 2017, 12:04 pm
NIGHTLIGHT wrote: April 26th, 2017, 11:53 am
Silver wrote: April 26th, 2017, 11:33 am
NIGHTLIGHT wrote: April 26th, 2017, 11:30 am


Is this you trying to rationalize your leftist tendencies????
I can't help you if you refuse to be educated. Do you know who Ezra Taft Benson is? Do you know about the John Birch Society?
Nobody who identifies himself as a leftist today fits the standard of the link you posted you know that I'm talking about modern liberals. don't complicate plain things it's Unbecoming
I guess you told me.
I've been reading through your post you realize that you spew the same rhetoric that liberals use and I wouldn't know because I'm surrounded by them the same language the same arguments would you rather have Hillary Clinton as president?

Silver
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

Post by Silver »

NIGHTLIGHT wrote: April 26th, 2017, 12:17 pm
Silver wrote: April 26th, 2017, 12:04 pm
NIGHTLIGHT wrote: April 26th, 2017, 11:53 am
Silver wrote: April 26th, 2017, 11:33 am

I can't help you if you refuse to be educated. Do you know who Ezra Taft Benson is? Do you know about the John Birch Society?
Nobody who identifies himself as a leftist today fits the standard of the link you posted you know that I'm talking about modern liberals. don't complicate plain things it's Unbecoming
I guess you told me.
I've been reading through your post you realize that you spew the same rhetoric that liberals use and I wouldn't know because I'm surrounded by them the same language the same arguments would you rather have Hillary Clinton as president?
Would you kindly remind me to tell you someday about the invention of punctuation?

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nightlight
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

Post by nightlight »

Silver wrote: April 26th, 2017, 12:26 pm
NIGHTLIGHT wrote: April 26th, 2017, 12:17 pm
Silver wrote: April 26th, 2017, 12:04 pm
NIGHTLIGHT wrote: April 26th, 2017, 11:53 am

Nobody who identifies himself as a leftist today fits the standard of the link you posted you know that I'm talking about modern liberals. don't complicate plain things it's Unbecoming
I guess you told me.
I've been reading through your post you realize that you spew the same rhetoric that liberals use and I wouldn't know because I'm surrounded by them the same language the same arguments would you rather have Hillary Clinton as president?
Would you kindly remind me to tell you someday about the invention of punctuation?
My bad speech text doesn't work well

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nightlight
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

Post by nightlight »

Silver wrote: April 26th, 2017, 12:26 pm
NIGHTLIGHT wrote: April 26th, 2017, 12:17 pm
Silver wrote: April 26th, 2017, 12:04 pm
NIGHTLIGHT wrote: April 26th, 2017, 11:53 am

Nobody who identifies himself as a leftist today fits the standard of the link you posted you know that I'm talking about modern liberals. don't complicate plain things it's Unbecoming
I guess you told me.
I've been reading through your post you realize that you spew the same rhetoric that liberals use and I wouldn't know because I'm surrounded by them the same language the same arguments would you rather have Hillary Clinton as president?
Would you kindly remind me to tell you someday about the invention of punctuation?
I don't mean to come of confrontational I'm sorry just surrounded by libs at work all day is Trump this Trump that

Silver
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Re: Trump Launches His Asinine Protectionist Trade Policy With Some Mega Tariffs

Post by Silver »

NIGHTLIGHT wrote: April 26th, 2017, 12:39 pm
Silver wrote: April 26th, 2017, 12:26 pm
NIGHTLIGHT wrote: April 26th, 2017, 12:17 pm
Silver wrote: April 26th, 2017, 12:04 pm

I guess you told me.
I've been reading through your post you realize that you spew the same rhetoric that liberals use and I wouldn't know because I'm surrounded by them the same language the same arguments would you rather have Hillary Clinton as president?
Would you kindly remind me to tell you someday about the invention of punctuation?
I don't mean to come of confrontational I'm sorry just surrounded by libs at work all day is Trump this Trump that
I hate to pry, but is there some reason why you continue to torture your readers here with speech text? Are you not at liberty to use your hands to type?

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