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by al_hag 496 days ago
What does it mean to say you get lower labor cost and government subsidy issues? Are you saying the tariffs are disproportionate to the impact of the subsidies? Temporary price distortions eliminate competition, not encourage it.
1 comments

>lower labor cost and government subsidy issues

These are the arguments in favor of tariffs on Chinese autos, I understand they cause a disparity, and yes, IMO they are disproportionate.

> IMO they are disproportionate.

Typing the three letters in “IMO” is most certainly easier than doing/documenting complex financial analysis.

The EU might have done a careful calculation with their tarrifs, but the US's tariffs of 100% seems closer to a nice round number they thought sounded good than carefully thought out "proportionate" response to whatever the Chinese governments' subsidies were.
Lots of people don’t do the analysis and leave out the IMO, so at least this is more honest.