4 ms·
US protectionism would like a word with you.
by boringg 3y ago
US protectionism would like a word with you.
- seanmcdirmid 3y agoChinese protectionism would also like a word. Remember these tariffs were originally setup between the US and China in 2006 to protect China's car market, not the USA's. See https://faculty.econ.ucdavis.edu/faculty/dswenson/ChinaCarParts_CESIFO-2012.pdf https://faculty.econ.ucdavis.edu/faculty/dswenson/ChinaCarPa... > Here, the bilateral agreement noted the expectation that by 2006 China’s import tariff on assembled cars was to be reduced from its pre WTO level of 80% or 100% to 25%, while the diverse rates of tariff on auto parts were to be reduced such that the average tariff on auto parts declined to 10%. That was a reduction from the 80-100% it was previously, so 25% was a huge win back then, but it was (and is) still a mostly protected car market.
- boringg 3y agoI'm not saying anything about the Chinese protections merely the US protections.
- seanmcdirmid 3y agoThe US and Chinese protections were negotiated at the same time in 2006: China wanted a 25% tariff for automobiles imported into China from the USA (down from 80-100%), the USA said, OK, but we will apply the same to your cars. That's why it was negotiated, if China offered no tariff, the USA would have jumped at that. Almost all tariffs are reciprocated, that's just how this game works. It is only an accident in history that these tariffs now protect the USA rather than China.