I’ve been kind of flummoxed by Comrade Trump’s understanding of how economics works, but then this thing crossed my path:
When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!
— Donald J. Trump (@realDonaldTrump) March 2, 2018
What got me is that Comrade Stupid doesn’t see the obvious thing in his own example: if a country has a $100B Amero market, it means that the people in that country love, Love, LOVE whatever that product is. Cutting that exporter off is punishing those citizens.
Anyway, we note with amusement that the European Union is already retaliating with targeted tariffs aimed at Wingnuttia:
“European Commission President Jean-Claude Juncker told a German television station that Europe would retaliate against the sanctions with tariffs of its own.
“We will put tariffs on Harley-Davidson, on bourbon and on blue jeans — Levi’s,” he said.
“In previous trade standoffs, Junker threatened tariffs on Wisconsin dairy and Florida orange juice.”
Seems random… or is it?
“Senate Majority Leader Mitch McConnell hails from Kentucky, where the bourbon industry exported $154 million to the European Union last year alone, according to figures cited by CNBC.
“Harley-Davidson’s headquarters are in Milwaukee, Wis., House Speaker Paul Ryan’s home state. Levi-Strauss blue jeans are headquartered in the blue state of California, which is also home to House Majority Leader Kevin McCarthy.”
So I guess those European biker gangs of Levis-wearing orange-juice-and-bourbon drinkers are outta luck?