What do you think is the origin of the enthusiasm for tariffs right now? Mercantilism has so many arguments for how it is counter productive. I’m kind of mystified by why this new approach to trade is the zeitgeist, unless it’s as simple as protecting supply chains for national security reasons. What other arguments are there in favor of tariffs that make sense?
Discussion
I've heard the theory that this is bargaining chip. the idea being that the US will agree to drop the tariffs if other countries agree to buy more treasuries. And that this is a long term plan to lower interest rates, and help our fiscal crisis ...not quite sure how that all lines up, but I hope there is a plan!
But there is always the possibility that the 'people in power' are just being vengeful assholes. That has happened a lot in human history.
They are.