Trump taking oath of office 2017 (Flickr)
I don't always agree with Washington Post economics columnists Robert J. Samuelson, but his column in today's Washington Post is a good one and mostly right on point. Trade wars are bad for all countries involved in them, no matter who starts them. Trump is wrong on trade and his stance will ultimately hurt the Untied States and the world. United States and world income growth with be hurt and in the worst case scenario the United States and world income levels could actually take a hit in a world wide recession.
Here are some select quotes from Samuelson's column:
" In reality, these moves [by Trump] damaged American interests. They alienated our allies and trading partners, from Canada and Mexico (NAFTA) to Japan, Australia and Chile (TPP). Trump’s obsession with trade deficits further muddies the debate."
"During the 2016 campaign, Trump denounced China’s outrageous practices and pledged to eliminate them. Here’s where things went awry. To pressure the Chinese — to persuade them to buy more American goods and to shrink the technology transfers — the president proposed 25 percent tariffs on up to $150 billion of Chinese imports into the United States. Well, guess what? China retaliated with its own high tariffs."
"This is the larger story: The post-World War II trading system is being slowly dismantled. On that, Xi and Trump agree, even if they can’t decide who should run it."
Read Samuelson's column in the Washington Post at the following link: