Showing posts with label free trade. Show all posts
Showing posts with label free trade. Show all posts

Wednesday, August 26, 2026

Tracking the impact of Trump’s tariffs on US households. Really!

The use of tariffs by President Trump is certainly controversial! It runs counter to the enormous efforts and successes since the end of WW II to implement free trade among the nations.

However, there appears to be ample evidence that a lot of countries or e.g. the EU have also implemented e.g. non-tariff barriers to trade (e.g. climate change regulations) etc. over the decades. Or what about the "transshipment scam" (example Spain, Canada)? Thus undermining the principle of free trade!

However, notice that The John Locke Foundation and the Tax Foundation engage in some journalistic dishonesty. The huge extra government revenues due to the imposition of new tariffs is barely mentioned. How much US businesses and households suffered from the above mentioned trade restrictions imposed by other countries appears to be omitted (a typical case of "That Which is Seen, and That Which is Not Seen" fallacy made famous by Frederic Bastiat)

A reversal in the trade balance takes more than 12 months that is why it did not happen in 2025! Plus other than tariff factors may influence the trade balance of a country. Why "a reversal"? This is not required!

"The Tax Foundation is out with a new report summarizing the key economic impacts from Pres. Donald Trump’s tariff regime, kicked off by his “Liberation Day” announcement on April 2, 2025.

In short, the Tax Foundation analysts found that Trump’s tariffs have: imposed significant costs on U.S. households, harmed GDP, did not reduce America’s trade balance, and amounted to the largest tax increase since 1993.

Here is a summary of their key findings:

The Trump tariffs amounted to an average tax increase of $1,000 per US household: According to Tax Foundation analysis, the tax burden passed along to U.S. households amounted to an average of $1,000 per household in 2025. They project this burden will be $900 per household this year.
..."

"... Tariffs did not reverse the trade balance: One of the top stated goals of Trump’s tariff regime was to reverse America’s trade balance. A negative trade balance, of course, is not a reflection of a poor economy and can largely reflect sizeable foreign investment, as the country is seen as a profitable place to invest. Indeed, the U.S. has experienced negative trade balances for fifty years. After the implementation of Trump’s tariffs, the overall trade balance dropped by just $2.1 billion. The trade deficit in goods, however, actually deepened by $25.5 billion in 2025. ..."

Tracking the impact of Trump’s tariffs

Sunday, August 23, 2026

Are the U.S. and Canada spiraling toward a full-blown trade war?

Bad news! Whatever happened to the North American free trade zone (aka NAFTA) since 1994? Apparently, since then Canada has violated free trade principles in many ways by keeping certain US products banned or heavily regulated and so on.

Are we having here two old men in a contest of wills?

"After weeks of marathon talks between U.S. and Canadian trade officials, an agreement was almost in sight. Then, late on Friday, the talks collapsed at the 11th hour. Tariffs of 50% on $20 billion worth of Canadian goods went into effect, and Ottawa said it will respond with dollar-for-dollar levies on Sept. 8."

The Wall Street Journal What's news


Mark Carney (age 61) and Donald Trump (age 80) (Source)


Friday, August 21, 2026

Optimised, updated Free trade agreement Switzerland - China (SECO) in August 2026

Good or bad news! Something to watch!

It appears, this update is quite a success for Switzerland. However, it may deepen dependence!

Caveat: I am not familiar with this FTA nor with the current update

"President Guy Parmelin and Chinese Minister of Commerce Wang Wentao announced on 20 August, during a meeting in Bern, that negotiations on the optimisation of the free trade agreement (FTA) between Switzerland and the People’s Republic of China had been concluded.

Switzerland has achieved its negotiating objectives.
Under the existing FTA almost all Chinese imports into Switzerland are duty-free, while this is only the case for around half of Swiss exports to China.
The optimised FTA rectifies this imbalance: 99.8 per cent of Switzerland’s current exports will be able to enter the Chinese market duty-free. ...

Lastly, the provisions on environmental issues and labour rights will also be expanded and strengthened in the revised FTA. ..."

"... Trade ​between the ​two countries has ⁠expanded from 31.7 billion francs in 2015 to 51.2 billion francs last year, according ​to figures from the Swiss customs office, ​with China ⁠a big market for Swiss chemicals, pharmaceuticals, precision instruments and watches. ..."

Switzerland and China conclude negotiations on optimisation of free trade agreement (original press release)

Sunday, July 19, 2026

Mexican President Sheinbaum says she will attend World Cup final Sunday after invitation from Trump and negotiate NAFTA

Good news!

World Cup diplomacy for free trade by President Trump! The Art of the Deal! Very clever!

"... The presumption is they [Sheinbaum & Carney] will sit together. And if they do, the meeting would mark their first since December, following months of verbal sparring, according to CBS News. ..."

Mexican President Sheinbaum says she will attend World Cup final Sunday after invitation from Trump | Just The News "Sheinbaum and Canadian Prime Minister Mark Carney attending the match will come amidst tense negotiations to extend the trilateral North ​American trade agreement among the U.S., Canada and Mexico."


President Claudia Sheinbaum wears the presidential sash during her swearing-in ceremony as Mexico's new president in Mexico City, October 1 2024


Tuesday, May 26, 2026

Das chinesische Monaco: wie Peking ausländische Firmen auf die Tropeninsel Hainan locken will

Gute Nachrichten!

Chinas Hainan: Neue Freihandelszone lockt ausländische Firmen (behind paywall) "Keine Zölle, rekordverdächtig niedrige Steuern, einfache Genehmigungsverfahren: Chinas Regierung errichtet im Süden des Landes eine riesige Freihandelszone. Doch aller Anfang ist schwer."

Tuesday, February 17, 2026

EU adds hefty anti-dumping duties to 1,4-butanediol against China, Saudi Arabia, and US

Is the long lasting prosperous era of free trade since 1945 coming to an end? Is a spiral of trade protectionism measures building up?

What will come next? A trade war?

Presented as an "anti dumping" measure.

"The European Commission has introduced massive antidumping duties on imports of 1,4-butadiene (BDO), an important intermediate molecule in chemical manufacturing. The provisional duties are 106–114% on all imports originating in China, 52% for all imports from Saudi Arabia and 136–143% on all imports originating in the US. ..."

EU adds hefty anti-dumping duties to 1,4-butanediol | Business | Chemistry World "Imports from China, US and Saudi Arabia will see tariffs of 52–143%"

COMMISSION IMPLEMENTING REGULATION (EU) 2026/270 of 4 February 2026 "imposing provisional anti-dumping duties on imports of 1,4-Butanediol originating in the People’s Republic of China, the Kingdom of Saudi Arabia and the United States of America"


1,4-butanediol is a key intermediate and component of in various coatings, polymers and solvents


Sunday, January 04, 2026

China's $113 Billion Free-Trade Experiment on Hainan Island province

Good news! This could be huge! When communists experiment with laissez faire, laissez passer capitalism!

"“China on Thursday split off a Belgium-sized island with an economy comparable to a mid-sized country from the mainland for customs processing, part of a bid to join a major trans-Pacific trade deal and establish a new Hong Kong-style commercial hub.

Officials hope that turning the southern province of Hainan into a duty-free zone will spur foreign investment, with goods that achieve at least 30% local value add able to move on into the world’s second-largest economy tariff-free. Foreign firms will also be able to operate in service sectors that are restricted on the mainland. ..."

"... As of December 2025, new laws came into effect making Hainan a separate customs zone and consolidating a favorable regulatory environment in the southernmost province of China. ...

Hainan is now effectively the world's largest free trade port by area. Encompassing over 35,000 square kilometers, it is roughly fifty times bigger than Singapore and even slightly bigger than Belgium. ...

The province comprises Hainan Island and various smaller islands in the South China Sea, and now operates under a “two-line” customs system designed for greater openness while maintaining domestic security.

The first line marks the boundary between Hainan and the global economy, where most trade barriers have been removed. Under the new legislation, the majority of goods can enter the province freely, with a significantly expanded list of zero-tariff imports covering raw materials, equipment and consumer products.

The second line functions as a filter between Hainan and mainland China. There, standard customs rules apply, with goods subject to tariffs and controls intended to protect domestic markets. ...

For example, Australian beef can be imported into Hainan duty-free. Then, if the beef is sliced and packaged for China-destined hotpot products on the island province itself, it can enter mainland Chinese supermarkets with the same exemptions. ...

Foreign companies can also open special bank accounts in Hainan, with capital flows exempt from mainland foreign-exchange controls, while foreign universities are permitted to establish campuses without a Chinese partner.

Visa-free entry to the province has also been expanded from 59 to 86 countries, now including the United States, Germany and Australia, as well as several countries in the Middle East and South America. ..."

China's $113 Billion Free-Trade Experiment on Hainan Island - Human Progress

China bets on province the size of Belgium to reshape global trade "The Chinese Communist Party has officially turned the island province of Hainan into a free trade port, one of the government's most ambitious economic experiments to date."

Friday, October 03, 2025

In Trade We Trust: How Markets Build Social Fabric

Recommendable!

Those who are familiar with the Austrian School of Economics this is nothing new!

Caveat: I did not read the entire article.

In Trade We Trust: How Markets Build Social Fabric "Far from eroding community bonds, markets weave broader networks of trust."

The Free Traders Have It Backwards: The US is the largest free trade zone in the world

Recommendable! Food for thought!

"... The U.S. economy produces about $28 to $29 trillion a year—roughly the same size as all the world's exports combined. Our GDP is one quarter of all the world's output. Imports might add variety at the margins or bring in goods that foreign producers are especially good at producing, but they aren't crucial to bringing quality products to American consumers.

Free-trade theory says countries should stick to what they have a "comparative advantage" in—coffee for Colombia, wine for France, cars for Germany. That tidy model might work for small, specialized economies. It doesn't fit America.

The U.S. is a continental economy with every climate, resource, and skill base. We grow olives and cranberries—crops that never overlap anywhere else on earth. We make semiconductors and soybeans, airplanes and avocados. That's not comparative advantage. It's comprehensive advantage. Our economy is so large and diverse that the neat Ricardian trade story collapses. We have the domestic capital and labor to make quality products at a scale and variety unknown to history or the rest of the world. We don't need to specialize in one niche to be efficient. ..."

Breitbart Business Digest

Friday, September 05, 2025

China issues anti-dumping ruling on European pork, charges deposits

The trade wars are heating up! Progress on global free trade, pursued since 1945, is suffering another setback!

Well, the Communist Party of China has practiced mercantilism for several decades without much resistance from the West.

"China has made a preliminary determination that Europe is dumping pork and pork by-products into its market, causing “material injury” to the domestic industry, Beijing’s Ministry of Commerce said on Friday. ..."

China issues anti-dumping ruling on European pork, charges deposits | South China Morning Post "Ministry of Commerce says importers covered by preliminary judgment must provide cash deposits with shipments"

Wednesday, July 23, 2025

India, UK to sign free trade deal during Modi's visit

Good news! Brexit keeps on giving!

"... The pact, concluded in May after three years of stop-start talks, should boost bilateral trade by removing numerous barriers and granting each country greater market access to the other. It will take effect after the British parliament and India’s federal cabinet approve it, likely within a year. ..."

India, UK to sign free trade deal during Modi's visit, cut tariffs on whisky, garments | Reuters

Monday, April 07, 2025

European Union offers to remove all tariffs on industrial goods in response to Trump's tariffs

Amazing stuff! Mind boggling! Can you believe it? The Art of the Deal!

President Trump is on his way to become the greatest champion of global  free trade the world has seen in decades!

The magic word: "reciprocal tariffs"

European Union offers to remove all tariffs on industrial goods after Trump demands reparations from Europe | Blaze Media "Lutnick said the tariff policies will lead to re-industrialization of the US."


What a mover and shaker!


Sunday, April 06, 2025

Trump’s tariff triumph as a mind-blowing 50 world leaders beg to negotiate with the president

Amazing stuff!
Maybe Trump's tariffs will ring in a new age of free trade across the globe!
Maybe a virtuous cycle of removing national tariffs and non-tariff trade protections has been started.
What else could happen next? Perhaps other countries will also impose higher tariffs on China.

Wednesday, October 23, 2024

No trade is free: Changing course, taking on China. Really!

Abandoning the post-WW II era of promoting the very successful global free trade is not advisable!

It seems the pendulum is swinging again from free trade and global prosperity back to more managed trade and protectionism again. It also counters the great opening towards China in 1972 by then President Nixon and Henry Kissinger.

A trade war between the US and China should be avoided! Foolishness is not free either!

If communist China is indeed price dumping or subsidizing exports or resorting to other manipulative measures, then this should be addressed directly and openly! However, the US is not quite innocent either of foul trade practices.

The 47th President (presumably Trump) would be well advised not to heed too much to these hawks!

Intercollegiate Studies Institute newsletter: How do we respond to China?

Robert Lighthizer's recent book (believed to be published in 2023)




Thursday, June 06, 2024

The Growing Imperative for Internal Free Trade in Canada

This seems to be an interesting approach! It may apply also to other countries that are federalist.

"... According to estimates, interprovincial trade barriers add between eight and 14.5 per cent to the prices of goods and services in Canada, which implies direct economic costs of around $32 billion a year. Barriers to trade and labour mobility also contribute to slower productivity growth in the economy.

Prominent non-tariff internal barriers to trade and labour mobility in Canada include dairy quotas, restrictions on the sale of alcoholic beverages to customers in other provinces, and sector-specific regulations that differ across provinces/territories, particularly vehicle weight and dimension standards.

The federal government should encourage the provinces to liberalize trade within Canada ..."

The Growing Imperative for Internal Free Trade in Canada | Fraser Institute

Thursday, May 23, 2024

I need 35 visas to travel within Africa but French & European Tourists Roam Freely - Aliko Dangote (the richest man of Africa)

Very recommendable! Mr. Dangote also mocked the African Continental Free Trade Area founded in 2018. The video also showcases the ease of freedom of movement in the European Shengen Area!

Friday, January 19, 2024