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darawk | 11 months ago

That's why you implement them reciprocally, to force anyone else implementing them to reduce theirs. Their problem is that the method they used to identify the tariff levels was, generously, crude. And also that it was implemented too sharply.

However, as a political tactic, the sharp implementation gives them breathing room to re-calibrate before the midterms. That comes at a real GDP cost, though.

discuss

order

Panzer04|11 months ago

Retaliatory tariffs are just dumb. They're literally a tax on your own citizens.

The only reason to implement them is to protect local manufacturing, which is usually a bad thing in the long run (they just become less competitive)

darawk|11 months ago

Not retaliatory, reciprocal. Retaliatory tariffs are dumb. Reciprocal tariffs are the Nash equilibrium. Whether or not these particular tariffs are in fact reciprocal is something we could debate, though. At best they are a very crude approximation of reciprocal tariffs.