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China’s Industrial Policies and Trade Rules – If You Can’t Beat ‘Em, Join ‘Em?

Discussions are now underway as to whether EU antitrust policies need to be relaxed in order to allow greater latitude to meet the challenge posed by Chinese mega-firms.

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When a Rose Isn’t Just a Rose: How Trade Policy Was Used to Fight Drugs from Colombia

Americans will give each other 200 million roses over the Valentine season. The majority were grown in Colombia. How did this come to be? For decades, U.S. Government trade, development, and drug eradication policies were designed to move South American growers away from cultivating the coca plant used to make cocaine by substituting commercially profitable production of cut flowers.

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Is Public Opinion Turning Against Tariffs?

New public opinion research shows that the majority of Americans worry the tariffs will do more harm than good for the economy.

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A High Wire Act: The Trump Administration and Section 232

The current administration's use of Section 232 to impose trade-restrictive measures on imports of steel and aluminum has become the source of increasing domestic discontent among steel-using industries, farmers who are the target of retaliatory tariffs, and Members of Congress who are reconsidering having delegated powers over trade to the President. It has also put WTO dispute settlement to an unwelcome test.

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Cash Feeding China

Feeding China’s State-Owned Enterprises With Government Cash

China went from a net importer of critical intermediary goods such as glass, paper, steel, and auto parts, to becoming the leading producer and dominant global exporter of these products. How could this seismic shift occur in industries where China does not maintain a particular advantage in labor, technology, or natural resources? The answer in large part is subsidization of Chinese production in the form of state-directed capital flows.

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Is the Trade War Causing Manufacturers to Leave China? Yes and No.

Manufacturers of labor-intensive products like apparel have already been looking elsewhere in Asia as labor costs continue to rise in China. China has not substantially increased market access for foreign investors in many sectors, causing foreign investment to slow or flatline in recent years. With lingering doubts about the worsening investment climate in China, the trade war is hastening decision-making that had already been underway.

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Trump-Xi Meeting on US-China Trade War: Five Possible Outcomes

The meeting between President Donald Trump and President Xi Jinping in Argentina in late November may prove to be a turning point for not only for the US-China relationship, but for global trade. Both leaders enter these discussions knowing the far more important question is whether there can be a sustainable co-existence between a Western market-driven economy with democratic ideals and a centrally-managed Chinese economy led by the Communist Party of China.

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With His China Trade War, Trump Aims to Alter the Course of History

Trade wars, like real wars, are costly. But people are willing to sacrifice — at least up to a point — when they believe a cause is worth fighting for. Doing nothing in response to China’s policies would have cost nothing in the short run. But if the concerns raised by China’s policies are legitimate, doing nothing to fix them now will cost more to fix over time — if they remain fixable at all.

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First Came Beard-Loving Millennials. Now Razor Makers Face a Close Shave with Steel Tariffs

Well-known razor makers like Boston-based Gillette already face strong headwinds from changing consumer habits: fewer men are shaving as regularly now that beards are more in fashion. Online subscription services like Dollar Shave Club or Harry’s are also putting pressure on prices and profit margins. Now, razor makers are dealing with the problem of tariffs on the specialized steel they import.

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Free Trade is Full of Holes When It Comes to Cheese

American cheesemakers are having a harder time finding an outlet for production through exports. China, Canada, and Mexico are three of the most important destinations for U.S. cheese. But in reaction to U.S. steel tariffs, these trading partners raised their tariffs on cheese. Getting caught in the crosshairs isn’t new for cheesemakers. It’s a sacred cow for many countries (pardon the pun) and therefore a popular pain point to exploit in trade disputes.

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