Category Archives: markets

Auto Tariffs

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Auto makers, parts suppliers, and dealers are joining forces to push back against the Trump administration’s proposal to apply tariffs of up to 25% on vehicles and components imported into the US….

The auto industry is aiming at the wrong target.  The German auto industry and the US have already agreed in principle to a regime of no auto tariffs at all.  It’s the German government that’s waffling and the EU that’s ignoring the matter altogether.

These domestic execs need to be asking the German government and the EU why they’re so disinterested instead of whining about domestic matters.

An Example of Irrationality

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Here’s Donald Trump decrying Germany’s willingness make itself dependent on Russian energy supplies by pushing for Nordstream 2, which will mean that Germany will get 60% of its natural gas from Russia, to go with the 40% of its oil imports that already are from Russia.  Aside from becoming so dependent on an enemy for its energy, Germany will be paying Russia billions of euros for the privilege.

I have to say, I think it’s very sad when Germany makes a massive oil and gas deal with Russia, where you’re supposed to be guarding against Russia, and Germany goes out and pays billions and billions of dollars a year to Russia.

The Progressive-Democrats went hysterical over Trump’s remark.  Here’s House Minority Leader Nancy Pelosi (D, CA) and Senate Minority Leader Chuck Schumer (D, NY) in a joint statement:

President Trump’s brazen insults and denigration of one of America’s most steadfast allies, Germany, is an embarrassment.  His behavior this morning is another profoundly disturbing signal that the President is more loyal to President Putin than to our NATO allies.

Because not wanting billions of euros to go to Russia in return for dependency on Russian good offices is somehow being loyal to Putin.

Sure.

Not Far Wrong

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In an interview with the British newspaper The Sun, President Donald Trump said that Prime Minister Theresa May’s Brexit “blueprint” for Brexit would likely kill any opportunity for special trade deals with the US.  A critical part of that blueprint would have Great Britain

stick[ing] to a common ­rulebook with Brussels on goods and agricultural produce in a bid to keep customs borders open with the EU.

The EU’s trade rulebook, not just on goods and ag products, but covering all trade, explicitly blocks nations from entering into unilateral trade deals with non-EU nations.  Trade deals with non-EU nations can only be EU trade deals.  Sticking to the EU’s trade rulebook, then, would make it impossible for Great Britain to enter into its own deals with other nations—including with the US.

If they do a deal like that, we would be dealing with the European Union instead of dealing with the UK, so it will probably kill the deal.

If they do that, then their trade deal with the US will probably not be made.

Trump isn’t far wrong on that.

At a joint news conference the day after the Sun interview, though, May said that

the leaders had agreed to pursue an “ambitious” trade deal between the two nations that “works for both countries right across the economies.”

That would seem encouraging for Great Britain, implying as it does that May’s blueprint doesn’t, or will be modified to not, include a commitment to the EU’s trade rulebook.

Free Food Stamps

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The House passed a farm welfare bill that includes a requirement for food stamp recipients to work for their welfare payouts last month, and the Senate passed its version—carefully without that requirement for actual work. Or perhaps just timidly passed, since Senate Agriculture Chairman Pat Roberts (R, KS) was intimidated by Progressive-Democrat Ranking Member Debbie Stabenow (D, MI) and couldn’t find the backbone to oppose her.

Now the two bills go to conference for resolution, and the outcome doesn’t look promising for work.

In today’s tight employment environment, that work would be easy to find, too, and in light of that, The Wall Street Journal‘s Editorial Board made the comment

What’s bewildering is that Democrats seem willing to write off so much human potential as permanent wards of the state.

There’s nothing at all mysterious about that, though. The only potential that Progressive-Democrats see in these unfortunates is their votes, not their human potential. Indeed, that’s the Progressive-Democrat work-for-welfare program: vote for us Prog-Dems, or we won’t pay you any money.

President Donald Trump should support the House and inject some backbone into Senate Republicans, including especially Roberts, and announce he’ll veto any farm welfare/food stamp bill that doesn’t include the House’s work-for-stamps requirement.

In a Contest of Tariffs

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In a piece purporting to show Where the Trade Battle Hurts the Most, Julie Wernau and Ira Iosebashvili had this comment:

Renegotiations of the North American Free Trade Agreement are being closely watched in Canada, too. The Trump administration has used threats of auto tariffs to win concessions from Canada and Mexico, a strategy that hasn’t sat well with the two countries.

President Donald Trump also offered them, and the rest of the G-7, a regime of no tariffs at all. Their refusal even to discuss the offer doesn’t sit well with those of us outside the NLMSM.