With the US placing tariffs on other countries, why don’t the other countries simply band together to form their own trade agreement to partially offset any negative effects?
With the US placing tariffs on other countries, why don’t the other countries simply band together to form their own trade agreement to partially offset any negative effects?
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They are doing exactly that. Look at China when Trump v1 walked away from the TPP.
No need. All that noise will be gone in a few weeks.
They will but international trade isn’t a national-level phenomenon. States set policy but individual businesses are the ones that are actually making trade agreements and trading. Not all businesses will be able to establish a market in other countries.
They are. However, countries with competent leadership move with considered action, and that takes time.
Already happening, Japan, South Korea and China are hookin up…tariffs make strange bedfellows
What do you think the EU is?
They’re working on exactly that.
Canada seeks stronger EU trade ties in face of Trump tariffs
South Korea, China, Japan agree to promote regional trade as Trump tariffs loom
Canada and the EU are slowly making plans.
They are doing that right now.
America is going through its own self inflicted Brexit wounding.
Basically, the UK thought it was important enough that everyone would come hat in hand when they left the EU, all that happened was that the EU worked around the UK and the UK is still recovering.
This is like Brexit x10 for America
America (some people within) think that its too valuable in its economic standing for other countries to put America on the sidelines, but with the globalization of the world the other countries are just banding together to carve the USA out of that self appointed role.
The thing is that it takes years to do this and there are some people that think that ‘Well as soon as the government changes and sane people run it again it will go back to normal’
Not a chance.
That’s the thing. One trump term was an anomaly, a second one means you can’t ever really trust Americans anymore because they are just a couple of years away from putting in crazy people to run the government.
Countries will sideline the usa and rather than eagerly doing things in conjunction they will minimize the USA’s participation as much as possible on the basis that no one can really trust the USA to act in good faith anymore.
That is not just limited consumer goods. Even now countries are turning to arms manufacturing, medical, research, etc. from other countries because the USA is not a trustworthy ally.
Yeah, well I’m going to start my own trade agreement with blackjack and hookers.
Canada is making a leading move towards forming a coalition of like-minded countries.
You don’t think that is happening?
Think of how much hatred, revolt and disdain for this trade war there must be for China, Japan and South Korea to come together.
That should tell you all you need.
Canzuk for the win!
We should have fast tracked trade agreements. Often 70-80% of a trade agreement is pure win win for both sides. But the reason they can take years / decades is the other 20-30% and currently they after be in 100% agreement.
Why not agree the easy stuff in a treaty and implement it straight away and the difficult stuff, put a small / tiny team on it and eventually they will work it out.
Seems a much better way of doing it.
Agreed. Cambodia, Ethiopia, Laos, Serbia, Bulgaria, and all these countries should band together and buy all the Ferraris, the Porshes, the Rolexes, at tariff-free prices. Why didn’t they think of it?
They are doing just that. Why wouldn’t they? The US is going to get screwed.
That’s exactly what is going to happen. It was happening even before this deadline. Americans don’t realize just how screwed they are. They showed the world that their agreements aren’t worth the paper they are written on. It will be a slow process but democratic countries will strengthen their trade agreements with each other.
It’s exactly what Canada is doing and we are the U.S.’s BIGGEST trading partner.
They can try but the US is the largest economy in the world and is the largest net importer as well. These countries are all export dependent and sell a lot of stuff to America. You can already imagine that when you have a bunch of export dependent countries trading with other export dependent countries that it’s not going to work out as trade has to eventually balance. At the end of the day its going to be a recession for everyone.
That’s what we are doing. America doesn’t make anything that can’t be bought elsewhere.
Probably will. These things usually take more than a day.
Imagine the whole planet joining forces. Canada, EU, Latin America, Asia, Africa, every smart caring nation working together.
Isolate USA+Russia, establishing the Euro as the reserve currency to trade with instead of USD.
The world can absolutely accomplish that with a common goal against stupidity.