American tariff disease is launched at the world

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Well, at least we now know what Donald Trump will do with definitions, so that he can be seized by another whim. Maybe it was better when we did not. The “mutual” definitions that were announced in the so -called liberation day were comic, which were developed by a mathematical formula based on a commercial deficit in a clear belief that the imbalances of the current account can be determined through commercial policy.

It is clear that the United States will define exports from Hurd Island and the McDonald Island, a volcanic archipelago near the Antarctic, which is only inhabited by the penguins, and from the Diego Garcia base, an American military base. In theory, the customs duties lead to the currency’s estimate to compensate for its effects, but the dollar has weakened in response to this delicious policies.

But this is not some general crisis of credibility in trade and globalization. It is largely a local pathology, especially a Republican Party. The Democrats during the era of Joe Biden accepted many of Trump’s first tariffs, but at least with the logical basis of mysterious coherent industrial policy. Republicans have not necessarily turned into a nest necessarily feeling protectionBut their increasing bent since Richard Nixon took the party to the right in the 1960s allowed the destructive trade warrior without mercy to take over and they are very terrified to stop him.

Unintended incidents, prejudice and results play a greater role in the policy of the dysfunctional American tariff than what may be proposed by the sweeping of economic history. the “A tariff of return “ In 1828, which greatly raised taxes on industrial imports, which almost caused secession from South Carolina from the Union due to the influence of agricultural trade, it became a law by chance. The legislators of the southern agriculture entered the destructive spoilers to prevent the agreement and watch it by terror as it passes.

The famous SMOOOT-HWLY TV of the year 1930 reflects the same Politics went wrong. This time, Republicans suggested the large industrial definitions, which the Americans did not need, as a large group of professionals to enter the protection of farmers. They did not imagine that other countries would split and get rid of the vortex of global protection that worsened the great depression.

This current situation is not just a tactical error: this is what happens when the ideological extremist becomes president. If there are any senior between Trump’s economic team, they will get a treasury when making decisions. Among them are Kevin Haysit, an economist in the Orthodox Free Trade, George W. Bush and Mitt Romney advised, but unable or unwilling to stop chaos. Treasury Secretary Scott Bessin was supposed to be the voice of financial markets: it is clear that he was silent or ignored. The drive is from Trump itself, which Since the 1980s He had a wrong look at Definitions Based on the measurement with the corporate profit and loss account, and trade warriors Peter Navarro, who looks closest to the president’s ear.

Under the Bush president, many Republicans in Congress today may be ready to maintain a relatively open trading system. John Thun, from South Dakota, who is elected as a leader of the Senate in November Orthodox views The need for more commercial deals to open the markets outside. But almost all of his gatherings, completely failed to reaffirm the constitutional role of Congress in commercial policy.

Condolences is that the rest of the world is less likely to follow the United States than in the 1930s, and during that time the international gold standard caused deep damage and stimulates severe reactions than policy makers. The European Union is likely to be divided with definitions and other import restrictions anywhere near the dollar against the dollar, and Brussels does not want to raise high and durable commercial barriers with the rest of the world.

The United States is a smaller share of the global economy compared to the thirties, and the risks of protectionism are better understood. In the same way that Trump’s Canadian General National and political accompaniment has ignited among European leaders, the tariff is likely to act as a warning tale for other governments that are not incentive to join the United States in some of the fictional “Mar-Arago Agreement” to reorganize currencies.

There can be no logic washing of Donald Trump’s definitions. This is not part of a carefully designed industrial policy or a cunning strategy to urge compliance between commercial partners or the appearance of a chaos designed to intimidate other governments in obedience. It is a greatly devastating stupidity, and generations of American politicians, especially for Republican politicians, who allowed things to slide to this point are the collective blame.

Alan.beattie@ft.com