Has history given us any case where tariffs did more good than harm?
Adam Smith, as a matter of principle, thought no, never.
Donald Trump disagrees. Or does he? Will he stop short of a tariff war if he gets something he wants?
Is he just a dealmaker from Queens, New York, huffing and puffing and bluffing, ready to accept a deal after strutting and showing off to his fans?
On the issue of how to end the war in Ukraine, it seems that the Europeans, offended, are calling his bluff. Now, he has to put up or shut up – either do the right thing or go your own way with Putin, just the two of you.
I doubt any person, even Trump himself, knows what he is going to do at the last minute. After shaking the chess board, where will the pieces land? Which ones will fall off the board and which will still be in positions to take down castles and knights?
As I wrote earlier, tariffs cannot be squared with the Caux Round Table Principles for Business.
Therefore, making a compelling public case for expanding markets, lowering prices and free trade is a duty for those who care about raising standards of living.
Economic nationalism, a form of social Darwinism ignoring the moral sense, has its defenders who think more in terms of we/they, them/us, than in terms of all of us interdependent and each with something to contribute to the whole or to us. It is me first and the Devil take the hindmost?
What, then, is the best strategy for a people, a country, a community, to use in seeking prosperity and security? What does game theory tell us – go win/win or win/lose? Should cities shut themselves off from towns and small farms with entrance taxes and market fees? Should farmers charge more for eggs, butter and chickens to those who live in cities? Adam Smith answered those questions with a “Never!,” if you want to optimize your prosperity.
Please join us at 9:00 am (CDT) on Tuesday, March 11 for a Zoom round table on tariffs and what may lie ahead of our global community, thanks to Donald Trump.
To register, please email jed@cauxroundtable.net.
The event will last about an hour.