I think this is actually the precise correct thing.
If the EU instituted tariffs on let's say, software and certain kinds of services, then we would reduce our unemployment, develop those sectors etc.
Whereas the large-scale oil trade and how its conducted in practice mean that non-Americans will be holding dollars and that the US will be able to have lower interest rates than its competitors, this money, which the US thus can sort of print cheaply can then be used to buy goods from abroad, to get high-quality products in a way that is effectively cheap.
So tariffs for the US were always something that would shake things up. I don't think they're necessarily terrible in the very long run, but this system is something like 50 years old and the US won't be able to switch to a sensible system where it itself actually builds real things and gets what it needs that way quickly. So switching to a sounder approach to production should probably have been allowed to take more time if disruption was to be avoided, but it wouldn't have been possible for political reasons, and now the US politicians are sort of flip-flopping because they see that this transition will not be smooth at all.
If it were almost any country other than the US it would have been a different matter. If the EU wanted to reduce import of finished goods from low-wage countries, that would probably be fine and would probably benefit ordinary people without a long transition, but the US is a different matter. Wages in the US are as high as they are in large part because of these weird trade and investment flows.
If the EU instituted tariffs on let's say, software and certain kinds of services, then we would reduce our unemployment, develop those sectors etc.
Whereas the large-scale oil trade and how its conducted in practice mean that non-Americans will be holding dollars and that the US will be able to have lower interest rates than its competitors, this money, which the US thus can sort of print cheaply can then be used to buy goods from abroad, to get high-quality products in a way that is effectively cheap.
So tariffs for the US were always something that would shake things up. I don't think they're necessarily terrible in the very long run, but this system is something like 50 years old and the US won't be able to switch to a sensible system where it itself actually builds real things and gets what it needs that way quickly. So switching to a sounder approach to production should probably have been allowed to take more time if disruption was to be avoided, but it wouldn't have been possible for political reasons, and now the US politicians are sort of flip-flopping because they see that this transition will not be smooth at all.
If it were almost any country other than the US it would have been a different matter. If the EU wanted to reduce import of finished goods from low-wage countries, that would probably be fine and would probably benefit ordinary people without a long transition, but the US is a different matter. Wages in the US are as high as they are in large part because of these weird trade and investment flows.