Displaying items by tag: trade tariffs

One of the underlying motivations for the American Revolution was to industrialise, and reverse the crippling trade deficit with Britain. Protectionism and trade barriers were the USA's de facto policy for trading until 1947, when it switched to free trade after most of its industrial competitors were wiped out by the war. It signed up to the General Agreement on Tariffs and Trade (GATT), whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas, ‘on a reciprocal and mutually advantageous basis’. GATT morphed into the World Trade Organisation (WTO) in 1995, but its original text is still in effect. Pray that current international debates will draw countries back to the roots of GATT and WTO, to reduce or even eliminate trade barriers.

The G7 leaders will discuss many things, including trade tariffs. France says tariffs are illegal. Macron will not shy away from telling Trump what he thinks. Merkel may try to calm down her EU counterparts to avoid a full-scale trade war. Italy’s new prime minister is a political novice who said Italy is ‘second to no-one,’ and shares some of Trump’s views about ‘putting national needs ahead of global ones’. Japan is not expected to support Trump's tariff decisions. Some believe Theresa May could look for concessions to calm the waters ahead of Trump’s UK visit in mid-July. On 3 June US treasury secretary Steve Mnuchin faced sharp criticism from the angry finance ministers of all the G7 nations over America's imposition of steel and aluminium tariffs. See