World leaders criticise Trump tariffs as ‘major blow’ – BBC

The US Trump Administration moves to reverse the neo-liberal economic globalization and to introduce, after decades, new tariffs and custom duties on imports to the US. This has provoked an outcry in many countries in the World.

The neo-liberal economic ideology of open trade is in theory an interesting cooperation model between the countries – if it is handled carefully and fairly. It should be beneficial for all countries. Open borders and free trade are beneficial to national economies but not necessarily beneficial for other countries if not handled fairly. Many countries have introduced tariffs and custom duties on imported products, either out of the need to protect the home production or to raise additional income for the government. Other countries created blocks, like the EU, to protect members and exclude foreign competitive products. In the case of the EU, not only tariffs but an abundance of rules and regulations are prohibiting free trade imports. The EU block is a champion in non-tariff trade restrictions.

In today’s World, there is hardly a country without customs duties. Traveling to Europe can become a nightmare at customs control for US and other overseas travelers.

Therefore, why would it be unfair for the US to raise 10 or 20% tariffs on imports – while other countries do the same easily? As well, some countries charge excessive tariffs, notably on luxury goods and cars. If the US impose half of that percentage, why is it unfair?

It is correct that the US open borders were a kind of economic subsidy, in particular, for US allies. Also in view of the North American integration with Mexico and Canada, the open US borders were for long an economic driver for Mexico and Canada. Not so for the US.

Nevertheless, the country to profited most from the US open borders was China.

It has been mentioned many times by various economists that the open trade policy of the US is detrimental to its economy, while other countries get the profits. Not only China, but also Europe have been profiting. China has developed to the World’s 2nd largest economy, Europe has been able to pay for an extensive welfare continent. Of course, the Chinese and European outcry following Trump’s tariffs is even louder.