We'd be pissed if an enemy did this
BusinessCanadaEconomicsGeneralMexicoPoliticsTrumpUS PoliticsWorld PoliticsIt's hard to see the OAFPOTUS's actions towards our two biggest trading partners, Canada and Mexico, as in the interests of the United States. So far, the White House hasn't actually issued a (probably unlawful) order imposing steep tariffs that would undo our free-trade agreements, but just the threat has caused a lot of damage already:
As I wrote the other day, in the three decades since NAFTA went into effect, North American manufacturing has evolved into a highly integrated system whose products — autos in particular, but manufactured goods more broadly — typically contain components from all three members of the pact, which may be shipped across the borders multiple times. Manufacturers developed this system not just because tariffs were low or zero, but because they thought they had a guarantee that tariffs would stay low.
One way of saying this is that until just the other day there was really no such thing as U.S. manufacturing, Canadian manufacturing or Mexican manufacturing, just North American manufacturing — a highly efficient, mutually beneficial system that sprawled across the three nations’ borders.
But now we have a U.S. president saying that a duly negotiated and signed trade pact isn’t worth the paper it was printed on — that he can impose high tariffs on the other signatories whenever he feels like it. And even if the tariffs go away, the private sector will know that they can always come back; the credibility of this trade agreement, or any future trade agreement, will be lost. So North American manufacturing will disintegrate — that is, dis-integrate — reverting to inefficient, fragmented national industries.
And to think that many people imagined that Trump would be good for business.
We have, by a very narrow margin and with less than a majority of the vote, managed to put the most corrupt and possibly stupidest person in history into this office. If an adversary threatened to disrupt North American trade as much as this clown has, we'd threaten war.
And before you start wondering how long it will take for average Americans to get nervous, well, that's already happened: the only newly-inaugurated president in modern history with a lower approval rating was, of course, the same guy 8 years ago. (He has the highest disapprovals in history right now, though.)
Only 1,449 days to go...
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