Biden encourages Trump to impose more retail tariffs to stoke inflation

There is nothing normal or good about tariffs.

The simple fact is that tariffs don’t work.

Retailers are asking whether some Biden administration Democrats are taking cues from where Trump Republicans left their mark, given President Biden’s recent comments on additional tariffs on Chinese steel and aluminum. ing.

It’s possible that former President Trump’s advisers have floated new ideas for devaluing the US dollar (to boost exports), prompting Team Biden to throw out the latest mantra of “quit steel.” Or?

When President George W. Bush targeted steel in 2002, tariffs completely failed. When President Obama targeted Chinese tires in 2009, the tariffs completely failed. When Smoot Hawley introduced massive tariffs targeting protectionism in 1930, they failed spectacularly. And America is in a deep economic recession.

Now, President Biden announced He said he wanted to impose additional tariffs on Chinese steel and aluminum to shore up support for his party, which is popular with voters in rusty industrial areas and is in crisis. Given most economic logic, this is a bad move and has significant trade implications for the metals community and the retail economy. There are other ways to address the issue, but Biden is choosing tariffs, which increases trade uncertainty.of fact It was supposed to be overhauled by the U.S. Trade Representative four years after the original Trump tariffs, but by next month it will have been two years in preparation for the (yet to be announced) four-year review. That means it will take!

As everyone knows, inflation is a national problem, and recent data supports the idea that we are clearly heading in the wrong economic direction. This week’s Commerce Department Personal Consumption Expenditure Index (PCE) came to 2.7% The rate of increase in March was up from 2.5% in February, and was higher than the Labor Department’s consumer price index (consumer price index) came to 3.5% The rate in March was up from 3.2% in February. None of this is good.

A few years ago, the retail industry thought there would be major changes in U.S. trade policy once President Biden took over the reins from President Trump. Candidate Biden was asked about tariffs in an interview with NPR’s Lulu Garcia-Navarro in August 2020, and said, “President Trump is not the first person to say that China is exploiting the United States. President Obama was also. Similar complaints were made. Some say President Trump’s stance is good for countering Chinese influence. Why do not you (Candidate Biden) maintain tariffs? ”

Mr. Biden responded: “no. Hey, look, who said Trump’s ideas were good?? ” He also said, “Manufacturing is in recession. Agriculture has lost billions of dollars that taxpayers should have paid. We are going after China in the wrong way.”

During President Trump’s tenure, retailers spoke out and warned of consumer disaster if the proposed tariff policies continued. At the time, progressive retailers were listening sympathetically to Trump’s globalist henchmen, but these same retailers were completely ignored by the nationalists within their ranks. In the end, given the duration of the tariffs, the shadow of the dire retail predictions actually materialized, with President Trump’s tariff policies leading to higher consumer prices and lower retail sales, with America experiencing rampant inflation since the tariffs were introduced. Retail jobs were lost as a result of the observed Of course, one could argue that much of the retail price irrationality occurred during the COVID-19 outbreak, so it’s equally difficult to pinpoint the exact cause and effect, but that said, However, supply chains were clearly disrupted and several retail businesses went bankrupt. It is true that former President Trump created the initial tariff policy, but President Biden also shares responsibility. Because he continued then and is still trying to strengthen this program.

At least for former President Trump (to his credit), the beginning, middle, and almost the end of the tariff program was when he tried to reach a Phase 1 trade deal with China. President Biden has repeatedly said during his three years and four months in office that he intends to review President Trump’s trade policies (which, as mentioned above, have now been delayed by two years). Now, President Biden is running for re-election, staring directly at the Pennsylvania steel industry and proposing further tariffs that ignore reality and set a dangerous precedent for the future.

In Adam Smith’s 1776 Wealth of Nations, the economist describes “absolute advantage” as follows: It will be possible to gain profits through trade. ”

Adam Smith would have been absolutely appalled by the way tariffs have been weaponized for political gain. Former President Trump already imposed tariffs on steel and aluminum in 2018, and President Biden plans to impose tariffs on China again by imposing tariffs three times the current 7.5% tariff. This potential ploy has a direct impact on the political trade war syndrome, but if left unchecked it will not have a happy ending.

Earlier this year, the Wall Street Journal Editorial Board published an article titled: President Trump’s tariffs and ordinary people. The article states: “Trade wars invite painful retaliation, prop up politically advantageous industries at the expense of others, and raise prices for consumers like invisible taxes. They hurt average workers. Ta.”

Retailers have consistently told the administration that consumer spending still accounts for 66% of U.S. gross domestic product (GDP) and that increasing tariffs would mean more stress on the economy and higher inflation. I have continued to appeal.

It’s true that former President Trump once tweeted that “trade wars are good and easy to win.” Currently, the former president wants to impose a 10% tariff on imports from all countries, and perhaps a 60% tariff on China, if re-elected.

It’s clear that trade wars are nearly impossible to win, but it’s also true that President Biden opposed tariffs when he was first elected. It is important to note that a Biden administration will generally not be beneficial to retail consumers or those who trade products internationally. If the Biden team does indeed re-enter the tariff game, this clearly does not bode well for the future of retail.

“Saturday Night Live” comedian Colin Jost hosted the White House Correspondents’ Dinner last night, knowing full well that it’s election season and anything could still happen. He spoke after President Biden’s excellent speech. At one point in Colin Jost’s monologue, he says, “I have to admit that it’s not easy to follow President Biden. I mean, it’s not always easy to follow what he says.”

Buyer’s responsibility burden (Let buyers be careful)