Toby Nangle’s analysis of the rationale behind the Tariffs concludes that a formula is at play, one that was deduced by FT Alphaville’s Alex Scaggs
There are anomalies, Ireland does well, Spain does badly and Britain – well we should – using the formula – have no tariff at all. It’s just that everyone owes America so we get the baseline tariff 10%. Indeed it’s even crazier than that as Toby concludes.
One last thing not widely mentioned yet — there is also a baseline 10 per cent minimum tariff. Without this minimum, the UK would be treated with a negative tariff. So much for special treatment. 😢
Now I suspect there is some general law of economics that comes into play at times like this, when a small number of plutocrats make up things to please the under-educated and over politicised American mid-west.
It’s a law that points out that rich countries do something to help poorer countries, which charging them what they can’t afford. Already famously, some countries that will be subject to tariffs do not have people on them, only pensions.
Yes- that is not “pensions” it is penguins; Heard and McDonald Islands require humans to take a two week journey from Perth Australia to get to them.
In a week when the Greenlandic folk discovered they are at risk of being annexed by the USA, the penguins are subject to a 10% reciprocal tariff. It makes consistent sense – no or nonsense.
This calls into question our judgement of the USA. We have for some time considered them a dynamic nation with a sensible attitude to the world they live in but this consideration has been under threat since the emergence of Donald Trump and his mafia. First they turned thinking on climate change on its head , now they are taking out their angst on penguins in Antarctica, who are no doubt wondering just what they have done to be two-time victims.
Britain is a long-time friend of the USA but clearly our negative trading position (we sell left to them than they sell to us) is deliberately embarrassing the White House.
“Slap them 10% anyway, let them take that for being goody two-shoes”
I get to thinking of analogies and can think of only one from Britain
Truss
