Armstrong Economics Blog/World Trade
Re-Posted Mar 26, 2018 by Martin Armstrong
While Trump is being portrayed and the insane President hellbent on destroying world trade, the truth is the tariffs on steel and aluminum account for 0.2% of GDP or just 2% of actual trade flows of $2.4 trillion. On top of that, every president at least since Jimmy Carter has imposed protectionist tariffs on some portion of trade flows. Indeed, Trump has an old-world view of trade as just about every world leader. They look at trade only from a job perspective and NEVER from the viewpoint of the consumer. Anytime a country imposes a tariff to stop what they think is “unfair” competition, in reality, they are creating unfair competition. Why pay $3 for a head of lettuce if you can import it for 25 cents? This only makes the consumer pay more reducing their standard of living. Nobody ever looks at that side of the coin.