Lots of people talk about how the US should be more like Europe. People say the average European has a better quality of life, etc. Well, Europe has tariffs…
Targeted tariffs to protect and strengthen specific industries are fine - especially if done slowly and while supporting those industries internally to make sure that they aren't disrupted, and that they can actually capitalize on the space provided by a tariff.
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This policy is not fucking that. It's just a backdoor tax on everyone, with zero planning and support internally to bring those industries back.
Simple terms for your simple comment:
A morbidly obese guy slowly exercising is great.
A morbidly obese guy getting dropped into a marathon with no prep is a recipe for a heart attack.
Europe has higher taxes. But, somehow, despite the inefficiencies of governments, this produces a happier populace who work less and vacation more.
There's of course the opportunity to get those in line, but that requires negotiations.
I believe the EU has 10% tariffs on all US autos and we didnt have tariff theirs. That seems relevant in a way that this weighted average doesn't account for, right?
You can go tit for tat down the line, but all in all the numbers I gave you are the sum of everything.
Heavy tariffs won’t bring an equilibrium. It will only make imported goods expensive and allow the existing domestic producers to become laze and uncompetitive, all in all zeroing their export value.
Thomas Sowell who is 94 has some wisdom to share: https://x.com/HooverInst/status/1907630250135273527?ref_src=...