Our Banner

Mail address:

Cynthia Lucas #1 Mandalay Rd, Stuart, FL 34996 - We could use some help with expenses.

Newsletters

Martin 9/12 Calendar (& City of Stuart)

Showing posts with label exports. Show all posts
Showing posts with label exports. Show all posts

Thursday, June 13, 2019

Trump was right to threaten Mexico with tariffs

Trump was right to threaten Mexico with tariffs

A (North) America First policy

Donald Trump holds a piece of paper he said was a trade agreement with Mexico, while speaking to the media before departing from the White House
Let’s not mince words. President Trump and his loyalists were dead right. His threat of tariffs pushed Mexico to work harder to stop the Central American caravans, and the migrants who hope to exploit immigration law loopholes in order to receive asylum in the United States.
And the bipartisan, Trump-loathing political, business and media establishments were all dead wrong. They warned that his strong-arming would ignite a trade war, disrupt the thick web of supply chains linking the American and Mexican economies, and risk a recession. Equally off-base was the establishmentarians’ angst that Trump’s gambit would endanger the revamp of the North American Free Trade Agreement (Nafta) that he has sought and which Mexico and Canada recently signed.
Trump busted a ballyhooed — but entirely phony — globalist policy norm. Immigration and trade policy must kept completely separate? Seriously? When one of Nafta’s selling points is a promise that prosperity in Mexico will keep Mexicans home? All the same, I hope Trump doesn’t whip out the tariff threat again. Not because Trump’s tactics were ‘bullying’ — a childish charge that pretends coercion plays no part in international relations. And not even because further actual or threatened levies will undermine Nafta’s intended replacement, the US-Mexico-Canada Agreement (USMCA).
Read the article at spectator.us...

Alan Tonelson is the founder of RealityChek, a public policy blog focusing on economics and national security, and the author of The Race to the Bottom.

Wednesday, May 15, 2019

Patrick Buchanan: Tariffs -- The Taxes That Made America Great

COMMENTARY:

Patrick Buchanan: Tariffs -- The Taxes That Made America Great

 By Patrick J. Buchanan | May 14, 2019

As his limo carried him to work at the White House Monday, Larry Kudlow could not have been pleased with the headline in The Washington Post: "Kudlow Contradicts Trump on Tariffs."
The story began: "National Economic Council Director Lawrence Kudlow acknowledged Sunday that American consumers end up paying for the administration's tariffs on Chinese imports, contradicting President Trump's repeated inaccurate claim that the Chinese foot the bill."
A free trade evangelical, Kudlow had conceded on Fox News that consumers pay the tariffs on products made abroad that they purchase here in the U.S. Yet that is by no means the whole story.
A tariff may be described as a sales or consumption tax the consumer pays, but tariffs are also a discretionary and an optional tax.
If you choose not to purchase Chinese goods and instead buy comparable goods made in other nations or the USA, then you do not pay the tariff.
Read  the rest of the Commentary on cnsnews.com... 

Sunday, September 23, 2018

America First at Home and Abroad

America First at Home and Abroad

June 18, 2018  by Alan Tonelson
Trump's case for America First must refute internationalism’s root strategic assumptions and transform the nation’s definition of foreign-policy success.

IT’S INCREASINGLY OBVIOUS that Donald Trump is talking a much better America First foreign policy game than he’s playing.
Like his campaign and his inaugural address, his presidency so far has featured plenty of rhetoric lambasting the “globalism” of his predecessors, and threatening a decisive break with their diplomatic approach. Some important policy decisions do seem consistent with the inward-looking America First approach that was taken by the United States before Pearl Harbor, and that was marked by the grim, classically realist view that all the world’s countries are condemned to struggle for power and wealth, and that allies are much less long-lasting than interests. The leading examples are Trump’s withdrawal of the United States from the Trans-Pacific Partnership trade agreement, the Paris climate accord, and the Iran nuclear deal; his crackdowns on illegal immigration and on refugee admissions from allegedly dangerous countries; and his relative indifference to human rights abuses abroad.

But in security affairs, the president has also reaffirmed America’s major European and Asian alliance commitments—including the nuclear risk they create. He has continued a Middle East policy that assumes Washington can use military force skillfully enough, and is supported by reliable regional partners, to end the Islamic terrorist threat to the region’s stability and to the United States. Trump and senior aides have repeatedly endorsed the standard globalist view that the nation’s security and prosperity depend critically on maintaining its “global leadership.”
Economically, his administration has signaled considerable willingness to grant U.S.-based businesses trade protection, and has certainly rattled Canada, Mexico and many American companies by playing hardball on renegotiating the North American Free Trade Agreement. But he’s so far refrained from imposing or supporting sweeping tariffs (e.g., to punish China for currency manipulation or intellectual property theft, or to discourage production offshoring via the border adjustment levy included in the Republican House’s original version of the recently passed tax bill). He’s worked strictly, though aggressively, within the existing U.S. trade law system to deal with most corporate complaints. And his aides speak of reforming, not leaving, the World Trade Organization (WTO).
In fact, President Trump has even engaged in a practice that he’s described as being as characteristic of globalism (which most analysts call “internationalism”) as it is dangerously shortsighted: “trading away its security for prosperity.” What other explanation could there be for his offer of better trade deals for China if it helps Washington resolve the North Korea crisis?
All told, far from rejecting post–World War II internationalism either conceptually or operationally, Trump’s foreign policy seems focused on improving its core arrangements from the standpoint of hard-pressed Main Street Americans. In this respect, Trump’s positions evoke nothing so much as the policies of a White House predecessor whose internationalist credentials are rarely questioned: Richard Nixon. Ironically, though, the current president has (so far) done far less damage to postwar institutions than Nixon’s New Economic Policy, which actually brought down the Bretton Woods international monetary system.
READ THE ENTIRE ESSAY AT The National Interest...

Monday, August 6, 2018

(What’s Left of) Our Economy: Trump Metals Tariffs Coverage has Just (Again) Been Exposed as Largely Fake News

(What’s Left of) Our Economy: Trump Metals Tariffs Coverage has Just (Again) Been Exposed as Largely Fake News


Sunday 05 Aug 2018

In case you still think that President Trump’s charges of fake news-peddling by the national news media are fake news themselves, consider this: For the second time in two months, if you decided to hold your breath till you found a Mainstream Media item reporting that the America’s metals-using industries have been major job-creation leaders, not laggards, you’d have died.
Such omissions are especially important because since the Trump administration began imposing tariffs on steel and aluminum imports (in March), the media has been filled not only with predictions of massive employment and production losses in metals-using manufacturing (because the prices of two noteworthy inputs for these industries was bound to rise), but with accounts of actual economic damage that numerous companies in these sectors have already suffered. (See hereand here for just two examples.) 
READ THE REST OF THE POST AT RealityChek...

Friday, February 24, 2017

(What’s Left of) Our Economy: Some Real Fake News on Trump and Trade Data

(What’s Left of) Our Economy: Some Real Fake News on Trump and Trade Data

Friday, 24 February 2017

Posted by     LINK

Talk about a non-story. That some globalization cheerleaders have tried to blow up into a scandal. And all because the Trump administration seems to be interested in correcting important distortions in some commonly used U.S. trade data that presents a misleading picture of America’s exports, imports, and trade balances.
Here’s the situation. Last Sunday, The Wall Street Journal reported that  “The Trump administration is considering changing the way it calculates U.S. trade deficits, a shift that would make the country’s trade gap appear larger than it had in past years, according to people involved in the discussions.”
According to the Journal, “The leading idea under consideration would exclude from U.S. exports any goods first imported into the country, such as cars, and then transferred to a third country like Canada or Mexico unchanged….”
Continued the article, “Economists say that approach would inflate trade deficit numbers because it would typically count goods as imports when they come into the country but not count the same goods when they go back out, known as re-exports.”
So in other words, President Trump and his minions are thinking of artificially deflating the figures describing what the United States sells to the rest of the world, but not making a corresponding change on the import side that would reduce the amount of goods that the nation buys from its trade partners. The result would be a larger U.S. trade deficit, and added ammo for the administration’s claim that America’s trade policy needs major surgery. Talk about creating “alternative facts,” right?
That’s what the Journal‘s editorial board concluded. Charged these trade zealots, the Trump-ers’ “effort to recalculate U.S. trade flows to show larger deficits” is a “trick….borrowed from the political left” that “deserves to be hooted down as an attempt to manipulate statistics to assist bad economic policy [i.e., curbs on trade flows].”
But these allegations aren’t even close to the mark – that is, if you believe theJournal‘s own reporting. For as the original piece eventually reveals (based, as is the entire article, on anonymous sources), the president’s team is indeed mulling making those import data changes, too – which would involve switching the import measure “to ‘imports for consumption,’ a slightly narrower way of measuring imports that would make less of a difference in the overall balance. “
Which means that – weirdly – the Journal reporters decided not to tell those outraged economists that the supposed Trump administration exercise would make statistically valid symmetrical changes, or that these (of course nameless) economists received this info from the reporters and decided to ignore it in order to try to create the appearance of impropriety. It also means that Journal editorial writers either didn’t read their own publication’s coverage all the way through, or chose to ignore that decisive material. Either way, someone has just massively violated their profession’s ethics.
As for the change (reportedly) under consideration itself, it’s entirely justified because those re-exports that under the main system for presenting trade data are counted as real exports literally are not Made in America. As indicated above, they enter the U.S. economy from abroad and then are shipped overseas (or across the border to Canada or Mexico) in nearly all cases entirely or virtually unchanged.
This means that they add virtually nothing to American economic growth or employment – a major and entirely valid reason that exports are so beloved). Andalthough, as some trade advocates claim, their transit into and through the United States creates logistical jobs (in transportation and,warehousing services), such logistical jobs would be created anyway if those goods were domestically produced (Unless you think that such products typically don’t need to be stored after production and then transported to customers, too?)
Moreover, the distortions resulting from sloppy methodology of the main exports numbers are anything but bupkis. Last year, for example, failing to strip out foreign-produced goods boosted total U.S. merchandise exports by 15.43 percent – or $224.33 billion. Relatively speaking, the impact on manufactures exports was even bigger – 17.48 percent, or $223.36 billion.
And the effects on America’s goods exports to Mexico and Canada, its partners in the controversial North American Free Trade Agreement (NAFTA), are especially noteworthy. Proper counting would reduce 2016 U.S. merchandise exports to the former by 23.19 percent and manufactures exports by 25.30 percent. The comparable numbers for Canada are 17.14 percent and 17.93 percent.
Moreover, since proper counting has little effect on import totals, either globally or for NAFTA trade, raising its profile would definitely show higher U.S. deficits. And the export gap has been growing steadily across the board.
Fittingly, this story can be closed on an absurd note, too. As indicated above, the U.S. government already compiles and reports (though in an unsatisfactorily low-profile way), export and import data that quantify exports actually produced in America, and imports actually consumed in America (although, as discussed inthis solid Public Citizen analyses, the import numbers could still use some improvement). So a changeover to more accurate figures that reveal trade’s true impact on U.S. production and job creation looks to be pretty easy. Think we’ll be reading about that in The Wall Street Journal?

Subscribe