The lesson for the world is that America can’t be trusted. Why bother making deals with a country that’s willing to slap sanctions on the best of allies, and clearly lie about the reasons, whenever it feels like it?
Meanwhile, the sudden retreat in the confrontation with China shows that we talk loud but carry a small stick. It would be one thing if the U.S. had changed course on the merits.
But backing down so easily, after all the posturing, tells the world that the way to deal with America is not to bargain in good faith, but simply to threaten the president’s political base, and maybe offer some payoffs, political and otherwise. (I’m still wondering about those floors China’s largest bank rents at Trump Tower.)
And when it comes to payoffs, autocracies have an advantage over nations that observe the rule of law. China appears to be getting most Trump tariffs removed; Canada still faces those steel tariffs.
Finally, by undermining the international system, America is making the world worse for itself as well as for everyone else. In fact, payback is coming right away.
The World Trade Organization just gave America a big win in a dispute over Chinese agricultural subsidies — but its verdict is probably moot, because the Trump administration has spent the past two years denigrating the organization, and has crippled the appellate body that is supposed to enforce W.T.O. rulings, blocking the appointments that would have given this trade court the quorum it needs to act.
Let’s be clear: Not having a trade war is better than the alternative. But the path the Trump administration has taken to its trade deals has made us less trusted, less respected and weaker than we were before. So much winning!
Meanwhile, the sudden retreat in the confrontation with China shows that we talk loud but carry a small stick. It would be one thing if the U.S. had changed course on the merits.
But backing down so easily, after all the posturing, tells the world that the way to deal with America is not to bargain in good faith, but simply to threaten the president’s political base, and maybe offer some payoffs, political and otherwise. (I’m still wondering about those floors China’s largest bank rents at Trump Tower.)
And when it comes to payoffs, autocracies have an advantage over nations that observe the rule of law. China appears to be getting most Trump tariffs removed; Canada still faces those steel tariffs.
Finally, by undermining the international system, America is making the world worse for itself as well as for everyone else. In fact, payback is coming right away.
The World Trade Organization just gave America a big win in a dispute over Chinese agricultural subsidies — but its verdict is probably moot, because the Trump administration has spent the past two years denigrating the organization, and has crippled the appellate body that is supposed to enforce W.T.O. rulings, blocking the appointments that would have given this trade court the quorum it needs to act.
Let’s be clear: Not having a trade war is better than the alternative. But the path the Trump administration has taken to its trade deals has made us less trusted, less respected and weaker than we were before. So much winning!
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