The Trump Tariff

I just heard a podcast of an interview with you by Mitch Jeserich in which he asked you about Trump's proposal (serious or not) to slap a tariff on any company that takes its operations overseas. You answered by saying that tariffs lead to trade wars. But I don't think that answers the question. He's not saying to put tariffs on every company in an industry in a particular country - the usual "tariff on Chinese steel" kind of thing - but on a Particular Company. Do you see the distinction? The tariff would only apply to the one company, not to its competitors, for example. Nor would it apply to a country, per se. Nor to the industry as a whole. Only to that particular company. If this is what he's proposing, would that lead to a trade war? What effects would a tariff on individual companies have?

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  • Jesse Wilson
    published this page in Ask Prof. Wolff 2016-11-14 23:39:11 -0500