Are we the baddies? - InvestingChannel

Are we the baddies?



You’ve probably seen that amusing British comedy bit when one German officers asks another, “Are we the baddies?”

I’m pretty sure that we (in the US) aren’t the Nazis, although some pro-lifers complain that legal abortion is kind of like the Holocaust. (Not my view!!)

Nonetheless, as each day goes by I see more and more news stories that remind me of that meme. Here’s The Economist:

The latest tariffs reject such mechanisms. The administration could have set out how Chinese EVs had gained from huge subsidies and then hit them with calibrated countervailing duties. It could have documented the security threat it claims they pose, rather than offering scary conjectures. Instead, it covered its protectionist aims with a fig-leaf: the new tariffs were put on top of Mr Trump’s, which were themselves originally justified by China’s theft of American technology. How farcical. The real fear about Chinese evs today is not that they are stealing from America, but that they have left American cars in the dust.

America’s blatant disdain for the need to make a rigorous case has dangerous consequences. At home it invites more firms to seek protection. Republicans and Democrats are already vying to offer the steepest barriers: Mr Trump has warned that he will put tariffs of 200% on cars made by Chinese-owned plants in Mexico. 

As if that’s not bad enough, now the US is bullying smaller nations into imposing tariffs of Chinese goods.

Canada has faced domestic and international pressure to join U.S. policy after President Joe Biden announced last month that tariffs on Chinese EVs would be raised to 102.5%, nearly four times the current rate. Following the U.S.’s lead, the EU also revealed plans last week to impose up to 48% tariffs on certain Chinese EVs.

Western countries, including the U.S., believe China’s overproduction threatens their industries by dominating the global supply chain.

Yes, I know. There are plenty of far worse regimes out there. Even so, it’s discouraging to see how America’s moral authority has declined so sharply over the past 10 years. We no longer even pretend to care about the international agreements that we once helped to forge.

I guess banana republics don’t need badges.



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