Hacker News new | ask | show | jobs
by adventured 3205 days ago
> Can USA wake up one day and decide to impose a 40% tariff without repercussions? Aren't there rules and international trade agreements backed by enforcement mechanisms?

You could debate how far the US could go with it before there are serious repercussions. However, several of the big auto-making countries go a great distance out of their way to shield their own domestic auto industries from foreign competition at home, including Germany and Japan. The US should behave exactly as they do and for exactly the same reasons.

What has the US gained by allowing foreign auto competitors such equal footing? Japan and Germany are widely regarded as having the two best auto industries overall, it has clearly has worked out just fine for them (insert the replies about correlation/causation). Why is the US held to a very different standard than China, Germany and Japan (3 of the 4 largest economies) when it comes to trade? That should and will end by necessity, whether it's a Trump or a Bernie Sanders that does it. It's a cultural wave that can't be stopped.

The US should use every lever at its disposal to compete, including strategically manipulating the global reserve currency (eg it's crazy that the US isn't running a $2 trillion, ten year, infrastructure QE program; the USD as the global reserve currency is unlikely to last more than a few more decades, we should leverage it while we have it to increase US competitiveness).

1 comments

You're ignoring the US consumers who get cheaper and higher quality vehicles from abroad because we don't have protectionist politics on vehicles. Why should I pay more for inferior Detroit cars?