Trump's tariffs have a silver lining as nations move to free up their economies
Donald Trump 's universal
tariffs . But if there is a silver lining, it's that they expose the hypocrisy and self-defeating internal trade barriers that countries or trading blocs have built up over a long time, resulting in a huge drag on their own economies. That loss in potential earnings could equal or even exceed the tariffs Trump has imposed on them.
Advertisement
This has been the case, for example, in
Canada
China and the
European Union . The tariff crisis has brought significant movement in removing barriers to commerce in Canada and China. As for the EU, it's harder to say.
Mario Draghi's
report on EU competitiveness made a big splash when it was released last September. It makes valuable suggestions on breaking down trade barriers – including differences in standards and regulations, and recognition of accredited qualifications – between member states.
But in the intervening months, Brussels seems to have moved on to 'harmonising' the economies of its member states on a common war footing, based on unrealistically high defence spending of 5 per cent of GDP.
Nato and the war economy may be taking precedence over commerce and trade.
09:42
Trump promises to bring US manufacturing back from China, but will his tariffs work?
Trump promises to bring US manufacturing back from China, but will his tariffs work?
China's 'unified domestic market'
In the mid-2010s, Maanshan was a fast-growing prefecture-level city in Anhui province, in central China. According to a World Bank report, private firms wanting to bid for mining rights there had to obtain approval from seven different local departments. Only local firms were successful, perhaps because officials favoured those with local connections, or because they were unfamiliar with outside companies.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
41 minutes ago
- South China Morning Post
Talks deadline for CK Hutchison US$23 billion Panama ports deal passes on Sunday
A deadline for exclusive talks on a US$23 billion sale of global port stakes by Hong Kong tycoon Li Ka-shing's CK Hutchison Holdings passed without a deal on Sunday, with analysts expecting complex negotiations to be extended amid intense US-China geopolitical rivalry. Advertisement The controversial transaction involved CK Hutchison selling stakes in 43 ports, including two at either end of the Panama Canal, to a consortium led by Terminal Investment Limited, an affiliate of the world's largest container line, MSC, and American asset manager BlackRock. The July 27 deadline was set 145 days from the company's March 4 exchange filing that first announced the exclusive negotiation period. Shipping and legal experts earlier told the Post that they were not optimistic the deal would be signed in its original form by Sunday, saying it could be subject to substantial changes given the political headwinds and regulatory hurdles in both Panama and mainland China. By midnight on Sunday, Hutchison had not disclosed any information on the deal. Amid the ongoing trade tensions, a high-level American business delegation was expected to visit Beijing this week, the Post reported exclusively. Sources said the trip would be organised by the US-China Business Council.
South China Morning Post
2 hours ago
- South China Morning Post
China, US to extend tariff pause at Sweden talks by another 90 days: sources
Beijing and Washington are expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday, according to sources close to the matter on both sides. China and the United States agreed in May to remove most of the heavy tariffs levied on each other's goods for 90 days while continuing trade negotiations. That suspension is set to expire on August 12. During the third round of trade negotiations between the world's two biggest economies, both will expound their views on major sticking points – such as the US' concerns over China's industrial overcapacity – rather than achieve specific breakthroughs, the sources said. One source said that, during the expected 90-day extension, the two nations will commit to not impose additional tariffs on each other, nor escalate the trade war by other means. According to three people familiar with Beijing's position, while the earlier discussions in Geneva and London focused on 'de-escalation', in the latest meeting the Chinese delegation will also press Trump's trade team on fentanyl-related tariffs.
South China Morning Post
2 hours ago
- South China Morning Post
‘Global approach' to AI regulation urgently needed, UN tech chief says
The world urgently needs to find a global approach to regulating artificial intelligence, the United Nations' top tech chief said this week, warning that fragmentation could deepen risks and inequalities. Doreen Bogdan-Martin, head of the UN's International Telecommunications Union (ITU) agency, said she hoped that AI 'can actually benefit humanity.' But as concerns mount over the risks posed by the fast-moving technology – including fears of mass job losses, the spread of deepfakes and disinformation, and society's fabric fraying – she insisted that regulation was key. 'There's an urgency to try to get … the right framework in place,' she said, stressing the need for 'a global approach.' Her comments came after US President Donald Trump this week unveiled an aggressive, low-regulation strategy aimed at ensuring the United States stays ahead of China on AI. Among more than 90 proposals, Trump's plan calls for sweeping deregulation, with the administration promising to 'remove red tape and onerous regulation' that could hinder private sector AI development.
