Friday, March 9, 2018

Michael Barone: Trump on trade — better than Smoot-Hawley

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President Trump’s announcement he is imposing tariffs on steel and aluminum imports from other countries, including close allies with economies interlinked with ours — notably, Canada — has aroused little enthusiasm and much criticism. It evidently prompted the resignation of Gary Cohn as head of his National Economic Council.

It has also prompted free trade-minded Republicans in Congress to propose repeal of Section 232 of the 1962 trade act, which delegates to the president the power to adjust trade restrictions and impose tariffs.
It’s not clear exactly what trade restrictions Trump is poised to impose and whether negotiations with Mexico and Canada will end the North American Free Trade Agreement. One possibility is that the self-styled master of the art of the deal is using steel and aluminum as leverage to get Canada to agree to his terms on NAFTA............To Read More........

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