Mount Tariff Erupts Again (extract from an editorial in today's WSJ)
“just when you think President Trump has reached a moment of trade equilibrium, there he goes again. Mount Tariff erupted once more Monday morning in tweets announcing tariffs on Brazilian and Argentine steel that dampened hope for election-year economic calm.
“ ‘Brazil and Argentina have been presiding over a massive devaluation of their currencies, which is not good for our farmers,” the President tweeted. “Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries.’ Where to begin?
…he seems to think he can use tariffs as a two-fer to help struggling U.S. steel makers while punishing Argentina and Brazil for displacing U.S. farm exports to China. He’s wrong on every count.
The Argentine peso has plunged 37% this year amid hyperinflation and fears that the Peronists who won the recent election will devalue and walk away from their debt as they have so often. But since the October election, Argentina’s central bank has tightened capital controls and set a price floor under the peso… Argentina makes up less than 1% of U.S. steel imports—hardly an economic threat to U.S. steel makers….”
“just when you think President Trump has reached a moment of trade equilibrium, there he goes again. Mount Tariff erupted once more Monday morning in tweets announcing tariffs on Brazilian and Argentine steel that dampened hope for election-year economic calm.
“ ‘Brazil and Argentina have been presiding over a massive devaluation of their currencies, which is not good for our farmers,” the President tweeted. “Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries.’ Where to begin?
…he seems to think he can use tariffs as a two-fer to help struggling U.S. steel makers while punishing Argentina and Brazil for displacing U.S. farm exports to China. He’s wrong on every count.
The Argentine peso has plunged 37% this year amid hyperinflation and fears that the Peronists who won the recent election will devalue and walk away from their debt as they have so often. But since the October election, Argentina’s central bank has tightened capital controls and set a price floor under the peso… Argentina makes up less than 1% of U.S. steel imports—hardly an economic threat to U.S. steel makers….”
