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America’s 100% tariffs on Chinese EVs: bad policy, worse leadership

Authors
Maple

Decoding #Biden's #EVtariffs Impact on #GlobalTrade Key Takeaways:

  • Biden's 100% EV tariffs counter decades of tariff reductions.
  • Increased tariffs raise political costs, impacting global trade consensus.
  • China's unfair practices and protectionism fuel trade tensions.

Further Insights

  1. Tariff Trend: Global tariffs reduced from over 10% in the 1970s to 3% today, significantly boosting international commerce and GDP per capita.

  2. Biden's Decision: President Joe Biden’s imposition of 100% tariffs on Chinese-made electric vehicles (EVs) marks a shift towards protectionism.

  3. Political Costs: Trade benefits consumers but affects specific workers and companies, fostering resistance and raising political stakes for open trade agreements.

  4. Global Disintegration: The consensus for an open trading system is eroding due to unfair practices by China and the rise of protectionist policies echoed by Donald Trump.

  5. Trade and Progress: Historic trade liberalization has been a key driver of prosperity, a trend threatened by current policy shifts towards increased tariffs.

Closing Thoughts: As the global trading system faces new challenges, how will countries balance the pursuit of fair trade with the need to maintain open markets? This discussion is crucial for business leaders to navigate an increasingly protectionist world.

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