Trade Disputes: U.S.-EU vs. U.S.-China

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The U.S. and EU are bitterly divided over hedge fund regulations that the U.S. calls protectionist. (It turns out the EU is bitterly divided over the regulations, too, but let’s set that aside for now, in order to facilitate my argument.) Meanwhile, the EU is bitterly protesting the U.S. Air Force tanker contract debacle, which it says illustrates U.S. hypocrisy on said protectionism. And all this is taking place in the context of longstanding EU complaints that the U.S. has deliberately allowed the dollar to slide, to the detriment of euro-zone exporters. (Again, let’s set aside the euro’s recent tumble […]

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