America’s trade war with China is back on. But where it is headed, no one knows. Just after midnight on July 6, the United States began collecting 25 percent tariffs on $34 billion in imports from China. Beijing immediately retaliated with similar duties on U.S. exports. President Donald Trump has already ordered tariffs on another $16 billion in Chinese exports for later this summer, after the comment period on the American list closes, and China will retaliate again. Assuming that happens as planned, the Trump administration will have levied tariffs on over $100 billion in imports into the United States. [...]
The new president that Mexico elects this weekend will not take office until Dec. 1, which means there will be little progress for the rest of the year in the negotiations between Mexico, Canada and the United States on a new and “improved” North American Free Trade Agreement. By December, American voters will have elected a new Congress that might have at least one house under Democratic Party control when it convenes next January. And later in 2019, Canadians will hold their parliamentary elections. The electoral calendar often poses challenges for trade negotiators because politicians are loath to make concessions [...]
In Europe and the U.S. this week, callous government treatment of asylum-seekers triggered public outrage and political tensions, which may be enough to soften policy in the short term. Unfortunately, that will not meaningfully address the underlying causes of the migration crises that have become the new political ground zero on both sides of the Atlantic. Long-simmering tensions within the European Union boiled over when Italy’s new populist government refused to allow the Aquarius, a ship carrying rescued asylum-seekers from North Africa, to dock at an Italian port last week. The Aquarius was left stranded in the Mediterranean for days [...]
