Arnon Grunberg



Back to old-fashioned trade-wars and the creation of more impoverishment,

Shawn Donnan in the FT: 'Those relationships are likely to be tested even further in the months to come as the Trump administration sets its sights on trade in cars. Last week, it launched a national security investigation into imports of cars and parts with a view to imposing a 25 per cent tariff that risks hurting Asian and European producers, many of which have major production facilities in the US.

After meeting jointly with US trade representative Robert Lighthizer to discuss how to tackle China’s steel overcapacity and other issues on Thursday, EU trade commissioner Cecilia Malmstrom and Japan’s Hiroshige Seko warned that the US was putting the entire global trading system at risk with its auto move. 

“This would cause serious turmoil in the global market and could lead to the demise of the multilateral trading system based on [World Trade Organization] rules,” they said.

“If Trump comes up with anything close to 25 per cent tariffs on German cars, I would really see it as the end of the German-American trade relationship. Not a single car built in Germany and sold to the US would be sold at a profit,” said Arndt Ellinghorst, analyst at Evercore ISI.'

Read the article here.

The demise of the multilateral trading system -- Trump as the anticapitalist, sort of.

The distinction between anticapitalist and resentment narrowed once again.

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