The Protectionist In Chief
President Trump isn’t done with imposing tariffs on foreign countries that are as he says, “Cheating America.” President Trump is turning back to his nationalist protectionist ways. With the ouster of globalist free traders Gary Cohn and Rex Tillerson, there is no one left to moderate Trump. All of this started last week when the President imposed his 25% tariff on steel and a 10% on aluminum imports. This action on steel and aluminum was supported by the domestic producer, however, was opposed by other industries and the markets. Once the President wouldn’t back down from the tariffs Gary Cohn announced that he was leaving the White House. When the news broke that Cohn was out markets fell by over 400 points. The last free trader was gone freeing President Trump to up the ante on tariffs.
Clearly, The President is making trade a top issue in the mid-term election with his moved to protect domestic industries. The President is using national security as the justification to impose specific tariffs on mainly on Chinese imports.
President is planning a $60 billion tariff package which will target up to 100 products imported from China. The $60 billion tariff package will target technology and telecommunications sectors imports from China. It’s clear from reporting that the package will include investment restrictions and visa traveling one as well. The White House has made its clear there goal is to lower our trade deficit with China. No one from the White House has said specifically how much they want to cut that deficit by.
The Key Highlights From Reuters Report:
- Tariffs on a wide range of Chinese made products. These products will include electronics, furniture, toys, and telecommunications.
- Potentially the value of products being hit with tariffs could exceed $60 billion.
- White House plan on announcing the targeted tariffs on China in the near future.
- Tariffs could potentially include investment restriction on Chinese Companies.
- May include traveling visa restrictions as well.
None of this is a shock to me since I took him at his word that he would push a pro-nationalist protectionist agenda. He ran against the free trade deals and won places Republicans haven’t won since Ronald Reagan. The President is seeking reelection in 2020 and will those same areas to have a second term. Since he took office the President has struggled to moderate and stay an outsider. Chaos has become the norm in the White House thanks to the constant infighting and lack of consent focus. Clearly President Trump is clearing out the White House by refusing to moderate on trade and some of the policies. Most business and media elites are opposed to tariffs fearing it will lead to a trade war. However, CEOs and workers of steel and aluminum companies support them. If the tariffs lead to higher prices for consumer goods and hurt the economy President will suffer election defeats. Many in the media believe this will happen, however, if its doesn’t its will in bold future tariff actions.