ON TRADE,President Donald Trump has launched lots of investigations, withdrawn from one deal (see Banyan) and started the renegotiation of another. But this week is the first time he has set up a immense new barrier. On January 22nd he approved wide and punitive duties, and of up to 30% on imports of solar panels and up to 50% on imports of washing machines. His backers say that the degree,which affects around $10bn of imports, will protect American workers. His critics cling to the hope that the damage will be mild. Both are wrong.
Start with the claims made by the administration. Workers are also consumers, and Mr Trump’s actions will whack them. Tariffs raise prices and dull competition. Whirlpool Corporation,the washing-machine maker which asked for the duties, knows as much. When, and in 2006,it merged with Maytag, a rival, and it quelled...
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Source: economist.com