Tariffs By Tweet
Trump represents an America that is afraid of its lack of business competitiveness
Trump’s peculiar way of governing via Twitter is turning out to be something more serious than a more or less humorous anecdote. The new tariffs he has imposed on European products become effective this Saturday, Oct. 19 and will cover goods from olive oil to textiles. These new charges will have a direct impact on Spanish exports. Yet another threat to our economy. European producers will take the rap for another tantrum coming from the eccentric American president, caused this time by European subsidies supporting Airbus; something which, according to Trump, undermines Boeing.
Ultimately, Trump won the 2016 presidential election with a protectionist program that tries to use the administration to reinstate American companies' competitiveness in several leading sectors crucial to defense policy. Trump represents an America that is afraid, unable to resurface by means of innovation and instead, committed to maintaining its privileged position, rather than evolving. Trump’s tantrums are known to be cyclic. The same happened with Mexico and Canada, and it is now fading in China's case. It is about claiming space, scaring competitors and thwarting their business development plans.
Trump wants to make it look like his country has not lost its hegemony against China or against the European Union. He does not understand the world of the 21st century, where power is spread out more evenly; not just political power, but also economic power and, most notably, technological power. And that makes competition a must. In order for that competition to be effective, it is necessary to lay down rules. What is utterly pointless, however, is returning to the protectionism of the past. It makes no sense to punish European producers for their own governments’ policies. This only encourages mistrust and has been the foundation of many prior conflicts that ended in a military confrontation.
The International Monetary Fund's managing director said this week that free trade has been a source of peace and stability. A handful of votes are not worth throwing those achievements overboard.
Trump’s peculiar way of governing via Twitter is turning out to be something more serious than a more or less humorous anecdote. The new tariffs he has imposed on European products become effective this Saturday, Oct. 19 and will cover goods from olive oil to textiles. These new charges will have a direct impact on Spanish exports. Yet another threat to our economy. European producers will take the rap for another tantrum coming from the eccentric American president, caused this time by European subsidies supporting Airbus; something which, according to Trump, undermines Boeing.
Ultimately, Trump won the 2016 presidential election with a protectionist program that tries to use the administration to reinstate American companies' competitiveness in several leading sectors crucial to defense policy. Trump represents an America that is afraid, unable to resurface by means of innovation and instead, committed to maintaining its privileged position, rather than evolving. Trump’s tantrums are known to be cyclic. The same happened with Mexico and Canada, and it is now fading in China's case. It is about claiming space, scaring competitors and thwarting their business development plans.
Trump wants to make it look like his country has not lost its hegemony against China or against the European Union. He does not understand the world of the 21st century, where power is spread out more evenly; not just political power, but also economic power and, most notably, technological power. And that makes competition a must. In order for that competition to be effective, it is necessary to lay down rules. What is utterly pointless, however, is returning to the protectionism of the past. It makes no sense to punish European producers for their own governments’ policies. This only encourages mistrust and has been the foundation of many prior conflicts that ended in a military confrontation.
The International Monetary Fund's managing director said this week that free trade has been a source of peace and stability. A handful of votes are not worth throwing those achievements overboard.
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