The latest anti-trade protectionist move out of the Trump administration is a 219 percent import duty on Bombardier aircraft built in Northern Ireland.
British Prime Minister Theresa May has threatened a trade war over the tariff.
May has
appealed directly to Trump to intervene in the dispute, which has dented her naive hopes of signing a post-Brexit free trade deal with the US.
May said yesterday she was “bitterly disappointed” with the decision of the US Department of Commerce.
She said that Boeing's long-term partnership with the Government is being "undermined by this behavior." All such tariffs are generally inspired by domestic cronies trying to may it difficult to compete, in this case, May knows it is US-based Boeing that is behind the tariff barrier.
Boeing complained that the jets were being "dumped" in the US at low prices after unfair state subsidies from the UK and Canada had helped Canadian-owned Bombardier win an order for up to 125 aircraft with US airline Delta.
As I have pointed out many times, subsidies of companies by foreign governments that cause product to be sold on the cheap is a disservice to citizens of those foreign countries but a benefit to US consumers.
As for May, retaliatory tariffs will only hurt consumers in Great Britain. Unilateral free trade is the best response by her to Trump's asinine action.
-RW
"subsidies of companies by foreign governments that cause product to be sold on the cheap is a disservice to citizens of those foreign countries but a benefit to US citizens"
ReplyDeleteIt's pretty sad that this even needs to be explained to anyone.
At least Jimmy Carter has lived to see that he's probably not the worst president**.
ReplyDelete**Personally, I think Carter was probably one of the better presidents in my lifetime. He eliminated the CAB, and I think that makes him the only president in my lifetime to eliminate a cabinet position. Most of the economic travails were Fed-based, and Carter appointed Volcker , who while still a printer, was a marvel compared to anything since Greenspan was appointed. Carter was a spender by the standards of his day, but he falls into the noise compared to any president since.