TriggerFinger


How threatening tariffs leads to free trade


InstapunditTheir proposal, people familiar with the situation say, is simple: Abandon all import tariffs for cars between the European Union and the U.S.

That would mean scrapping the EU’s 10% tax on auto imports from the U.S. and other countries and the 2.5% duty on auto imports in the U.S. As a prerequisite, the Europeans want Mr. Trump’s threat of imposing a 25% border tax on European auto imports off the table.

Threatening tariffs as a negotiating position makes a lot of sense when working towards both free and fair trade, even if tariffs themselves are economically inefficient.

This entry was published Sun Jun 24 11:22:10 CDT 2018 by TriggerFinger and last updated 2018-06-20 13:23:58.0. [Tweet]

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