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The Establishments war on Donald Trump
See other The Establishments war on Donald Trump Articles

Title: A trade war Canada will lose to its larger, louder counterpart [Trump]
Source: National Post
URL Source: http://nationalpost.com/opinion/and ... -its-larger-louder-counterpart
Published: Jun 3, 2018
Author: Andrew Coyne
Post Date: 2018-06-03 20:26:39 by Tooconservative
Keywords: None
Views: 5917
Comments: 44

Presumably Donald Trump was warned of the furious response he could expect from the United States’ trading partners were he to proceed with his threatened tariffs on their exports of aluminum and steel. He went ahead and did so anyway.

This is one problem with trade wars: they seek to achieve in retrospect what they failed to achieve in prospect. Were he likely to have been deterred by retaliatory tariffs, of the kind that Canada, Mexico and the European Union have just applied to a fantastic assortment of U.S. goods, he would have been already.

And yet, deterrence having so conspicuously failed, they feel obliged to carry out the threat regardless. It is difficult to see how the reality of a trade war is more likely to succeed than the anticipation, especially when dealing with a man who tweets “trade wars are good and easy to win.”

Perhaps its advocates are right to believe that retaliatory tariffs will so focus congressional and public anger on Trump, notably in the states most affected, that he will be forced into a humiliating retreat. Perhaps Trump is right to calculate that people do not necessarily put cause and effect together quite so logically — his people in particular.

They may even be moved to rally around their besieged (as they see it) president and country. Wasn’t it precisely to “fight back” against these scheming foreigners, with their long history of preying upon American naivety, that Trump hit them with the tariffs in the first place?

Canada has treated our Agricultural business and Farmers very poorly for a very long period of time. Highly restrictive on Trade! They must open their markets and take down their trade barriers! They report a really high surplus on trade with us. Do Timber & Lumber in U.S.?— Donald J. Trump (@realDonaldTrump) June 1, 2018

At any rate, while we are testing this theory, matching the U.S. tariffs we decry as madness and ruin with mad, ruinous tariffs of our own, it is our consumers and businesses who will be the victims. This is the other problem with trade wars. In a real war, the guns are pointed at the other guys. But tariffs are self-inflicted wounds.

This is a hard point to get across in the heat of battle. Suggest that retaliation is unlikely to work against them and certain to hurt us, and the response is a volley of patriotic oaths: We have to do something! So you’re saying we should just sit there and take it? You have to stand up to a bully! Why don’t you just take out U.S. citizenship then?

It is neither appeasement nor treason to refrain from costly, futile measures that at best are unlikely to succeed and at worst will trigger an escalating series of attacks and counter-attacks. It is simply facing facts. The U.S. economy is more than 10 times as large as ours. Its exports to Canada account for two per cent of its GDP; our exports to them are 25 per cent of ours.

Even in concert with the other countries targeted, it is unlikely that we can cause Trump to alter course, for the simple reason that he is Trump. A normal president in possession of a rational mind might well be dissuaded by the united opposition of much of the democratic world. Trump is not that president. If he were he would not have slapped the tariffs on us in the first place, in open defiance not just of economic sense or international trade law, but of the very “military security” invoked as its justification.

This is a point that bears repeating. The sheer enormity of Trump, the impossible combination of every conceivable malignant quality in one man — comprehensive ignorance, pathological dishonesty, thoroughgoing corruption, and a seeming determination to use his time in office to cause as much damage in as many ways as he possibly can — is a constant invitation to denial. The mind does not want to believe what the eyes and ears are telling it, that an emotionally disturbed man-child has control of the White House. But it’s true. The nightmare is real.

It is folly, then, to expect him to respond as other presidents might. What we can do is learn from this experience. Trump cannot be reasoned with, and he cannot be appeased; he can be flattered, but not with any expectation it will be repaid. His word is worth nothing, and while he can be frightened or bought, he absolutely cannot be relied upon. He will do what he will do, and there isn’t a lot the rest of us can do about it. This goes far beyond the odd tariff.

It was evident from the start that Trump represented a total break with all previous norms and expectations of how a president should behave or what he should believe in. Among those norms, it is now incontrovertible, is much of the international order successive American presidents helped to build over many decades.


Poster Comment:

Trump will crush that Trudeau punk and make him cry.

Trump wants to dump NAFTA and have one treaty with Canada, a separate treaty with Mexico. And they will lose a lot more than we will in any trade war. And they know it, just as they know that Trump will not be deterred or appeased or bought off.

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Begin Trace Mode for Comment # 27.

#3. To: Tooconservative (#0)

Trump will crush that Trudeau punk and make him cry. Trump wants to dump NAFTA and have one treaty with Canada, a separate treaty with Mexico. And they will lose a lot more than we will in any trade war. And they know it, just as they know that Trump will not be deterred or appeased or bought off.

I think you miss the point and so does Trump. Trade is two way. That the US hasn't come out on top is a reflection of the fact that the US can no longer dominate world trade, they have become a smaller part of it. What was the idea behind NAFTA, that the market might expend? But it did expand to take advantage of lower costs. The EU has been advantaged by creating a single market, The US should be similarly advantaged but it cannot be forced. Unless the people of Mexico have industries and employment they cannot buy US goods

paraclete  posted on  2018-06-03   22:14:31 ET  Reply   Untrace   Trace   Private Reply  


#4. To: paraclete (#3)

We will get a better trade deal with Canada. There is no doubt. Trump won't even have to flood them with illegal aliens to make them give in.

I think it is very likely that Trump will prevail and get a much better trade deal with Mexico as well. Our leverage isn't quite as strong with Mexico but it is still huge.

With the EU, the picture is more complex. This is the perfect time for Trump to pick a trade fight with them because he is lowering the boom slowly on them over the Iran deal, giving them until fall (for the most part) to conclude all business with Iran and join our new sanctions regime against Iran. Since Trump is already pursuing that, this is the perfect time to go after their trade deficits with America as well. Even more so considering what a pack of weak sisters they are as NATO allies, especially Germany. But there are another half-dozen that pay nothing for their own defense, others that cheat and try to count things like military pensions as defense spending, etc.

We're going to find out who our allies are and who we can rely on. Good allies will have more favorable trade with us. As long as they kowtow to our Iran sanctions as well.

It wouldn't take that much for Trump to just destroy the cohesiveness of the EU. Don't imagine that he couldn't. They hate him so much because they know it. They are close to falling apart already and it would take so little to push them over the edge, a nightmare for France and especially Germany.

Trump is pursuing multiple trade and economic policies at once, not a piecemeal approach that has worked to our disadvantage for so many years.

Tooconservative  posted on  2018-06-03   22:32:01 ET  Reply   Untrace   Trace   Private Reply  


#21. To: Tooconservative (#4)

They are close to falling apart already and it would take so little to push them over the edge, a nightmare for France and especially Germany.

You're right that the French would perceive it as a nightmare, as would the Germans.

But in concrete reality, it would mostly be a psychological trauma for France: seeing a half-century dream crumble and die. It would be a literal physical body blow to Germany.

France has staked its notion of "glory" on the European project. It is integration and expansion for the purpose of doing it, with France as elder statesman. The French are acutely aware that they are the architects and originators of the EU, all the way back to 1949. They had complicated reasons for doing it then, and complicated reasons for doing it now, and the psychological aspect of it is hugely important to them: this is their baby.

But the actual PHYSICAL nature of the EU is not as important for France as it is for just about any other country. Originally, it was to economically bind Germany and France together for French national security after three wars with Germany in 70 years, all of them disastrous (indeed, the one the French WON did the most damage of all to them!). With nuclear weapons and the utter pacification (to the point of pussification) of the Germans, the security raison d'etre disappeared in the 1960s.

Economically, France has chosen to skew in diverse: heavy agriculture (always a French forte), heavy science - particularly medical science, pharmaceuticals and aerospace, and heavy culture/luxury goods. This has left France with a diverse economy that is heavily insulated against economic crises: everybody always has to eat, medical care is a constant in all economies, the space program is government funded, aviation continues to grow worldwide as the Third World ceases to be, there will always be rich people who want the champagne and the Hermes scarves, and while all tourism suffers in down times, Paris remains the leading tourist city in the world. More marginal places get the overflow and adventurous people in flush times, but sooner or later everybody goes to Paris.

So, the EU is this precious thing to the French mind, this ornate tapestry of statecraft, but if the EU were to completely unravel, France still has its nukes - and therefore national security. It still has it nuke plants - just a shrunken market for energy export. It still has the doctors, the drugs, the planes, the food and the tourists. The Franc comes back, but the Franc was always a stable currency. It wasn't the Deutschmark, but it certainly wasn't the Lira.

The emotional trauma to the French would be very bad, seeing their diplomatic baby blow up, but economically France would not be devastated.

Germany would be laid low. They have perfected a manufacturing economy that is BASED ON export to a common market that has a common currency and an overarching court and tax system. Germany is no longer a stand-alone sovereignty. The Germans have no military. The Germans cannot feed themselves. It's not a widely diverse economy. The Germans produce cars and household machines, in prodigious numbers, and they sell them to Europe. Germany's not really a country any more, it's more like a state in the USA. Essentially, Germany is a giant Detroit in Detroit's heyday: a foundry and an industrial capital.

Pull apart the EU and the integrated economy, and the German economy would collapse, and there would literally be the danger of people not having enough to eat. It would not "muddle along", because half of German economic activity is devotes SOLELY to producing stuff to trade. In France, the comparable number is about 15%.

For Germany, then, the survival of the EU is nothing sort of national survival. The collapse of the EU would be a Gotterdammerung for the Germans.

It wouldn't REALLY be for the French, but the French THINK it would be, because they are so deeply wedded psychologically to the European project.

Of course US tariffs won't break up the EU. The EU countries - England excepted - all think they need the EU. And they're right: they are all much more prosperous with the EU than without it. There's nobody who loves the IDEA of EU more than the French, though they are the ones who actually NEED it less than any other European country - they're psychologically so wedded to the idea that an EU collapse would be viewed by them as one of the worst calamities in history.

Vicomte13  posted on  2018-06-04   9:22:31 ET  Reply   Untrace   Trace   Private Reply  


#27. To: Vicomte13 (#21) (Edited)

France has staked its notion of "glory" on the European project. It is integration and expansion for the purpose of doing it, with France as elder statesman. The French are acutely aware that they are the architects and originators of the EU, all the way back to 1949. They had complicated reasons for doing it then, and complicated reasons for doing it now, and the psychological aspect of it is hugely important to them: this is their baby.

The De Gaulle is six months into an 18-month refuel and repair cycle.

I wonder how they'd like it if Trump told them that we weren't going to keep the American catapult on their carrier in working order for them? American crews and equipment, 100%. And the only reconnaissance aircraft that fits on their carrier is one of ours.

We have a lot of leverage with the EU if we really want to use it.

Your point on Germany as the workshop of Europe vs. the more varied economy of France was well-taken.

Tooconservative  posted on  2018-06-04   10:56:58 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 27.

#30. To: Tooconservative (#27)

I wonder how they'd like it if Trump told them that we weren't going to keep the American catapult on their carrier in working order for them? American crews and equipment, 100%.

They wouldn't LIKE it, but it wouldn't be an existential crisis either.

They'd have to muddle along with regards to their carrier, and wouldn't be able to deploy it for awhile. But they can't do that right now anyway. That would diminish their ability to project such power as they occasionally do.

France doesn't want the US out of Europe, doesn't want NATO to dissolve, and doesn't want the EU to breakdown. But if those things were to happen, France would be ok. BeNeLux will only still be ok because France and Germany stick together.

Essentially, the Empire of Charlemagne is the part of Europe that can and should be integrated. But Eastern Europe? Austria, ok. Romania? No. Greece? God.

Vicomte13  posted on  2018-06-04 11:35:48 ET  Reply   Untrace   Trace   Private Reply  


End Trace Mode for Comment # 27.

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