From Bloomberg:
In light of China’s unfair retaliation, I have instructed the USTR to consider whether $100 billion of additional tariffs would be appropriate under section 301 and, if so, to identify the products upon which to impose such tariffs.
Category Archives: Trade Policy
Some Thoughts on Chinese Tariffs on US Exports: Tariff Incidence, Value Added, Exchange Rates
Reader Bruce Hall, opining on the impact of mooted Chinese tariffs on US hog and soybean exports.
As with pork, it looks as if the cost of food is going down for Americans as the Chinese bury their citizens in food price increases.
As you sow…
Another Event Study: Hogs
Source: ino.com.
John Bolton on Tariffs on Imports of Chinese Goods
From The Hill:
President Trump’s incoming national security adviser John Bolton said Sunday he hopes impending economic tariffs against China could be “a little shock therapy” for the country.
Some Thoughts on the Art of (Trade) War
夫未戰而庙算胜者，得算多也；未戰而庙算不勝者，得算少也。
The general who wins the battle makes many calculations in his temple before the battle is fought. The general who loses makes but few calculations beforehand. — Sun Tzu
Guess which sentence applies to which side in the incipient struggle?
Springtime for Social Scientists, Winter for Markets and Exporters
I’ve got new event study examples for my finance course! Trade policy measures that are evaluated to hurt profitability of major US listed firms have definitive effects on the Dow Jones index.
Figure 1: Dow Jones Industrial Average index. Red bold lines at announcement of impending Section 232 national security based trade restrictions on steel, and Section 301 trade sanctions aimed at China. Source: TradingEconomics.
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A Declaration of Trade War on China?
Nearly Two Decades of US-Canada Trade Balance Data
There seems to be some confusion regarding the distinction between trade balance in goods and services (a typical macro variable of interest) and trade balance in goods (more commonly reported, but less and less relevant on its own as countries become more service intenstive). In order help remedy this confusion, I plot below freely and easily accessible data, for those willing to expend a few calories to click.
Wisconsin, Trade and Section 232
I was interviewed on the weekly newsmagazine Here and Now today about Mr. Trump’s tariffs on steel and aluminum:
Regarding Wisconsin, cheese was not on the Hit List, but motorcycles and cranberries were.