In an eerie analogue of what is about to take place, on March 5, 2002 President George W. Bush imposed tariffs as high as 30% on global steel imports.
The temporary tariffs of 8–30% were originally scheduled to remain in effect until 2005. They were imposed to give U.S. steel makers protection from what a U.S. probe determined was a detrimental surge in steel imports, as more than 30 steel makers had recently declared bankruptcy. Canada and Mexico were exempt from the tariffs because of penalties the United States would face under NAFTA. Additionally, some developing countries such as Argentina, Thailand, and Turkey were also exempt.
The response was immediate.
Domestically, some of the president’s political opponents, such as Democratic House Representative Dick Gephardt, criticized the plan for not going far enough. For some of the president’s conservative allies, imposing the tariff was a step away from Bush’s commitment to free trade. Critics also contended that the tariffs would harm consumers and U.S. businesses that relied on steel imports, and would cut more jobs than it would save in the steel industry.
The international response – like now – was more vocal.
Immediately after the announcement, the European Union announced that it would impose retaliatory tariffs on the United States, risking the start of a major trade war. To decide whether or not the steel tariffs were fair, a case was filed at the Dispute Settlement Body of the World Trade Organization (WTO). Japan, Korea, China, Taiwan, Switzerland, Brazil and others joined with similar cases.
In a decisive decision, on November 11, 2003, the WTO came out against the steel tariffs, saying that they had not been imposed during a period of import surge—steel imports had actually dropped a bit during 2001 and 2002—and that the tariffs therefore were a violation of America’s WTO tariff-rate commitments. The ruling authorized more than $2 billion in sanctions, the largest penalty ever imposed by the WTO against a member state, if the United States did not quickly remove the tariffs.
In retaliation, the European Union threatened to counter with tariffs of its own on products ranging from Florida oranges to cars produced in Michigan, with each tariff calculated to likewise hurt the President in a key marginal state.
But it was the market’s response that broke the camel’s back: what followed immediately after the tariffs were announced was a 30% plunge in the S&P 500, a slump in the dollar and a rally in bonds that slashed 10Y yields in half.
After receiving the verdict, both from the market and the WTO, the United States backed down and withdrew the tariffs on December 4, 2003.
#1: A K A Stone To: Deckard (#0)
Told ya you were a globalist wto worshipper.
You're anti American.
Wet your diaper it doesn't matter. Trump will continue course diaper rash weirdo.
A K A Stone posted on 2018-03-06 14:21:39 Reply Private Reply
#2: Deckard To: A K A Stone (#1)
You're a fricking clown. I don't GAS about the WTO - I do care about the economy and just like Bush's tariffs - Trump's will be equally as bad.
Bush did the same thing Trump is doing now ...what followed immediately after the tariffs were announced was a 30% plunge in the S&P 500, a slump in the dollar and a rally in bonds that slashed 10Y yields in half.
What makes you think this time will be any different?
Deckard posted on 2018-03-06 14:31:58 Reply Private Reply
#3: Deckard To: A K A Stone (#1)
You'd follow that reality show, carnival barker to hell if he told you to.
Deckard posted on 2018-03-06 14:33:51 Reply Private Reply
#4: A K A Stone To: Deckard (#2)
Your propaganda graph means nothing. That was the stock market as a whole and it regularly goes up and down.
Bush pussed out.
You care about the foreign economy. Not if Americans have jobs. You would rather they sit around stoned.
Hey we should export all our jobs then we will be really rich and have all the time to sit around and do drugs with Deckard.
A K A Stone posted on 2018-03-06 14:36:37 Reply Private Reply
#5: A K A Stone To: Deckard (#3)
No. If Trump told me that heroin should be legal. Like you do. I would think he is an idiot.
God did warn about drug use. Pharmakia. Or something like that.
Telling people that drugs are wonderful is a lie that could lead to hell. If you don't repent.
A K A Stone posted on 2018-03-06 14:38:38 Reply Private Reply
#6: Willie Green To: Deckard (#0)
Willie Green posted on 2018-03-06 14:53:46 Reply Private Reply
#7: Pinguinite To: Deckard (#2)
Deckard, if you care about the economy, how would you suggest the trade deficit be remedied, if not through tariffs?
Part of the problem is our fiat based economy. The US dollar is the "world reserve currency" and as such, has been in artificially high demand worldwide for the last 70 years or so. This has created an unhealthy environment where the US can support a trade deficit. Though technically, we are indeed exporting as much as we're importing in value. The problem is, however, that the imports we fail to pay for by exporting goods & services, we pay for instead by exporting fiat US dollars, which can be created by the banking system.
In other words, what we export to make up the difference in trade is debt. IOU's in the form of US dollars. I mention this because if we were on a gold or silver standard, then running perpetual trade deficits like this would be automatically balanced out by creating a shortage of gold & silver within the USA as that limited commodity would flow out of the country. Shortages of G & S would make them more valuable within the USA, which would make subsequent imported goods more expensive even without tariffs.
But no, we don't have that. We instead have a fiat money system with which more money is created out of thin air by the banking industry to replenish the supply of money within the USA while it simultaneously flows out of the country to buy imported goods. And that can't go on forever.
So if not tariffs, what do you suggest can be done to balance the trade deficit?
Pinguinite posted on 2018-03-06 15:09:02 Reply Private Reply
#8: Justified To: Deckard, A K A Stone (#2)
So your okay with America getting ass-reamed by the rest of the world?
Plus did you forget 9-11???????????? What happen sept 2001?
Justified posted on 2018-03-06 15:15:09 Reply Private Reply
#9: Deckard To: Justified, Pinguinite, A K A Stone, Gatlin (#8)
If Trump's tariffs do not negatively impact the economy within 6 months I will make a formal apology to all here.
Deckard posted on 2018-03-06 15:28:58 Reply Private Reply
#10: misterwhite To: Deckard (#0)
misterwhite posted on 2018-03-06 15:34:59 Reply Private Reply
#11: Justified To: Deckard (#9)
My problem is ptb have ran all the good paying jobs out and any good job left illegals were brought in to take those. There is about 30% of the populations that got hosed in these deals and everyone just said to bad so sad deal with it.
Justified posted on 2018-03-06 15:39:04 Reply Private Reply
#12: Deckard To: Justified (#11)
I appreciate your thoughtful response.
Yes - we will see what happens after six months.
Deckard posted on 2018-03-06 15:42:50 Reply Private Reply
#13: Pinguinite To: Deckard (#9)
That may not be quite fair. Any alteration of the economic environment will cause negative disruption every time. The goal though is to get past that disruption as the economy adapts to the new environment which is hopefully an improvement, and that could take 6 months to 2 years.
Trumps timing here likely foresees this adjustment being complete by no later than election time for his 2nd term. That's 2.5 years out. If he's right, employment and the economy will improve by then. If he's wrong, then...
But yes, time will tell and we'll see what happens. Economics is far from a simple topic.
Pinguinite posted on 2018-03-06 15:44:19 Reply Private Reply
#14: Justified To: Deckard (#12)
Its a deal.
Justified posted on 2018-03-06 15:44:57 Reply Private Reply
#15: Gatlin To: Deckard, Justified, Pinguinite, A K A Stone (#9)
Your formal apology will be accepted by me, only if you are on you knees and you key in the words: “I am making this formal apology while on my knees ...”
Are we clear on this?
Gatlin posted on 2018-03-06 21:45:45 Reply Private Reply
#16: buckeroo To: Gatlin, Deckard, Justified, Pinguinite, A K A Stone (#15)
Oh sure, you on top of the demand chain to make a formal demand when we know you were fuckin' yukon in the ass all the tyme.
buckeroo posted on 2018-03-06 22:02:04 Reply Private Reply
#17: Gatlin To: buckeroo (#16)
Gatlin posted on 2018-03-06 22:09:57 Reply Private Reply
#18: buckeroo To: Gatlin (#17)
buckeroo posted on 2018-03-06 22:14:12 Reply Private Reply
#19: GrandIsland To: Deckard (#2)
America FIRST, shitbag. How many times do I gotta tell you.
GrandIsland posted on 2018-03-06 22:16:42 Reply Private Reply
#20: GrandIsland To: misterwhite (#10)
If Trump ain't legalizing weed, DickTard ain't gonna like him, regardless.
GrandIsland posted on 2018-03-06 22:19:44 Reply Private Reply
#21: GrandIsland To: buckeroo (#18)
I bet you tattooed the word Yukon on your tiny dick... so you can spank him every day.
GrandIsland posted on 2018-03-06 22:21:13 Reply Private Reply
#22: buckeroo To: GrandIsland (#21)
buckeroo posted on 2018-03-06 22:23:11 Reply Private Reply
#23: Gatlin To: buckeroo (#18)
Gatlin posted on 2018-03-06 23:12:55 Reply Private Reply
#24: Gatlin To: buckeroo (#22)
Gatlin posted on 2018-03-06 23:13:57 Reply Private Reply