E Buckle Up! Turbulence Ahead

 “…any business that leaves our country for another country fires its employees, builds a new factory or plant in the other country, and then thinks it will sell its products back into the U.S. without retribution or consequences, is WRONG! There will be a tax on our soon to be strong border of 35% for these companies wanting to sell their product, cars, A.C. units, etc., back across the border.”

President-elect Donald J. Trump, December 4, 2016

To many who voted for him, the above image¹ is exactly what they want to see America project to the world. One problem is that the above words that accompany this thinking is in direct contravention to the principles of productive trade: trade that has lifted hundreds of millions of people from the rolls of poverty and, in the process, enabled vast new markets to open up for companies to do business with; trade that has provided inexpensive goods and services to be provided for all, including those in developed countries like the US. Are there important issues that must be dealt with as a consequence of our globalized, technology enhance world? Absolutely, fair trade being at the top of the list. But it is undeniable that trade – fair trade – has benefited more than it has hurt. Tariffs – implied and otherwise – are in direct contravention to business practices and principles that guide ALL businesses toward a more effective and productive future.

But let’s not stop there.

After slapping China in the diplomatic face with his indiscreet phone call from the president of Taiwan, Mr. Trump tweeted the following:

“Did China ask us if it was OK to devalue their currency (making it hard for our companies to compete), heavily tax our products going into their country (the US doesn’t tax them) or to build a massive military complex in the middle of the South China Sea?” I don’t think so!”

President-elect Donald J. Trump, December 4, 2016