Tariffs deception 3
Tariffs deception 3
Some idiots or crooks in EU make silly comments about being united against USA's expected tariffs. There is no togetherness regarding this matter. There are SPECIFIC COUNTRIES that have LARGE SURPLUSES with USA; GERMANY, IRELAND, ITALY, FRANCE. They need to FIX these SURPLUSES. It is an issue that concerns only them. Since this can't be fixed instantly, they could discuss it with USA and ask for some time.
The rest of EU countries should not be united with them. Instead they should demand from them to fix this problem the soonest possible. Otherwise tariffs will be imposed on improts from all EU. United, together with USA should be countries with high trade deficits, UK, New Zealand, Argentina, Uruguay, Turkiye, Jordan, Greece, Cyprus, Latvia, Romania, Moldova, Ukraine, Georgia, Montenegro, Uzbekistan, Kazakhstan etc.
If they reduce their trade deficit, they will benefit, they will become richer. So they should support what USA is doing and they should do the same. Germany, Ireland, Italy, France are trying to fool the rest of EU countries. Not only they try to fool EU countries but also UK which is not in EU anymore. UK has the second highest trade deficit in the world, in absolute numbers and higher than USA's as a percentage of GDP, 3,31%.
UK is one of USA's largest trading partners. UK has the most fair trading relation with USA, among largest trading partners, 1,088 exports/imports ratio. Actually USA had a small surplus (2021). Starmer joined EU's meeting to respond to USA's expected tariffs. From that we conclude that he is; a) very stupid b) extremely ignorant c) big traitor. Also he can be all of the above.
France and Italy are different cases than Germany and Ireland. First of all, their deficit (from USA's side) is smaller. The deficits are; Germany 70, Ireland 60, Italy 39, France 20 (2021). Also, overall they are not unfair to their trading partners. Italy has 0,51% surplus and France 0,75 % deficit. Both are close to zero. So overall their trading is fair. On the contrary, Germany has 5,90% surplus and Ireland 9,90%.
USA should HIT GERMANY and IRELAND VERY HARD with TARIFFS, MUCH MORE than 25%. They have high deficit with USA and are unfair to all their trading partners. Especially Germany is in a group of countries that do the same, take advantage of their trading partners. May be Trump is waiting German elections. If AfD is in the government, he may be softer on Germany. Still, they will have to fix their trade surplus (deficit for USA) but in a milder way.
USA or any country can't put tariffs on German and Irish imports only. They would have to put them on products and services from all EU countries. But they can choose the ones that are imported from Germany and Ireland. For instance, tariffs can be imposed on machinery and vehicles that Germany exports to USA. Since it is not certain which route they will follow in USA, all other EU countries should demand mainly from Germany and Ireland but also from Italy and France to fix their trade surpluses with USA.
NWO's propaganda falsely claims that in a trade war, there are no winners. Even Kallas said it. Of course she does not have a clue regarding these matters because she is a lawyer. She tried to study Business Administration which is considered an easier subject than Economics. But she could not understand and did not complete the MBA program at Estonia's Business School. Who are these people that give her all these false information?
The truth is that the country with the deficit always wins a trade war. It would be correct to say that a trade war is hard on both sides, even the winners are hurt. But that is something different than claiming that there is no winner. The winner will clearly be the country with the deficit. It depends on what the purpose of imposing tariffs is. In this case, the purpose it to correct trade unfairness.
We believe that tariffs should have been imposed on EU (especially Germany and Ireland) long before Canada. Nevertheless, Canada should be in line for tariffs. Canada announced that they will impose 25% tariffs on USA goods and services. There has been a pause but it is only temporary. This action from Canada, retaliatory tariffs, is completely wrong. If there is a trade war between USA and Canada, USA will win because it has the trade deficit.
Let's say that there is a trade war between Canada and Mexico. What is the worst scenario, the most extreme thing that can happen? There will be no trade, no exports and imports between the two countries. Of course, it would take a long time for that to happen. In that case, imports from Canada will be substituted with USA produced goods or imports from other countries.
If there is no trade there will be no deficit any more. Instead of producing goods and services to export to Canada, USA will produce goods and services that will be consumed in USA. So USA will produce more and become richer while Canada will produce less and become poorer. Canada will definitely lose a trade war with USA because USA has the trade deficit.
Retaliatory tariffs is the wrong approach. Instead, they should discuss with USA how to correct trade imbalance. They have some valid arguments. Exports/imports ratio is only slightly unfair, 0,860. Also, overall they have a small trade deficit 0,62%. This means that overall, their trading partners are slightly unfair towards them. So they could fix unfairness to USA by not allowing others being unfair to them.
Canada is only slightly unfair to USA but because total trade is large, It has the seventh largest deficit (2021). When total trade is large, even small unfairness in exports/imports ratio can result in a big deficit. Mexico is a similar case with Canada. Export/import ratio is more unfair than Canada's (0,718) but still not very unfair compared to other countries. Because total trade is large, the second largest trading partner after Canada, it has the second largest trade deficit (from USA's side, surplus from Mexico's side).
We need to point out that some unfairness is unavoidable because natural resources are unfairly, not evenly distributed on earth. Some goods can not be produced, like for instance oil or natural gas. Some countries have them and others do not. Countries with natural resources tend to have trade surpluses because they have something other countries do not have and need.
Countries need to import natural resources even if they do not export the same amount of goods and services to the countries that have natural resources. So there is reasonable or acceptable unfairness and unreasonable unfairness. Russia has 2,48% trade surplus. This could be considered reasonable unfairness, if we take a look at the natural resources that it exports.
Tariffs are one way to reduce deficit. There are other ways like quotas and subsidies. Tariffs make imported goods more expensive. Subsidies make a country's products and services cheaper. They increase their competitiveness inside the country and abroad. Subsidies may reduce imports or increase exports. Quotas set a limit on the amount of imported goods and services.