Interesting Word of the Day: Carousel

For the first couple of months of my stint on the CEA staff back in 2000, I had to cover trade issues (my designated area was international finance). One of the first words I learned walking into the EEOB/OEOB– that I hadn’t heard of in my grad school classes — was “Carousel Retaliation”.

From CRS:

Section 407 of the Trade and Development Act of 2000 (P.L. 106-200) requires the
U.S. Trade Representative (USTR) to periodically revise the list of products subject to
retaliation when another country fails to implement a World Trade Organization (WTO)
dispute decision. This periodic revision of the product list has become known as
“carousel retaliation.” The intent of switching products is to exert more pressure on a
trading partner to comply with a WTO ruling.

I thought of this on perusing the initial list of retaliatory tariffs. No need for the items tariffed to stay the same.

 

One thought on “Interesting Word of the Day: Carousel”

  1. joseph

    Noted pugilist Scott Bessent double-dog dares the the bond market to bet against the yen. “I am the house” he boasts.

    Keep in mind that Donald Trump was “the house” at two casinos and still managed to go bankrupt. This childishness would be hilarious if it weren’t so dangerous.

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