Since farmers may be hurt by China slapping retaliatory tariffs on American farm goods, President Trump is now talking about extending $12 billion in emergency aid to farmers, The Wall Street Journal is reporting this morning.
China, in response to a series of U.S. tariffs, has levied duties on $34 billion of U.S. products, covering 545 categories, ranging from soybeans, pork, chicken and seafood to sport-utility vehicles and electric vehicles.
The farm goods were chosen to hit U.S. states that supported Mr. Trump just months ahead of the midterm elections, according to people with knowledge of Beijing’s plan.
Planned relief for U.S. farmers follows a series of tweets from the president earlier Tuesday in which he hardened his stance on trade ahead of a visit this week from European Commission President Jean-Claude Juncker.
Trump tweeted this morning:
So what happens when the feds print money? Inflation, of course, which eats into the value to your paycheck and savings.
Aren’t tariffs great?
Robert Samuelson wrote recently in The Washington Post that the Smoot-Hawley Tariff Act of 1930 may not have caused the Great Depression, but it certainly did not help end it.
“One crucial lesson of Smoot-Hawley is to leave trade policy alone — that is, don’t resort to protectionism — in any economic crisis that doesn’t automatically involve trade. Protectionism may make things worse and, possibly, much worse,” the columnist writes.
Protectionism discourages trade by raising the price of traded goods, Samuelson explains, thus exports and imports suffer and could lead to defaults by debtors, of which there are far too many right now, which could trigger a panic.
Those who do not remember history …