By the way, we’re having a trade war with Mexico.


Yes, yes, I know: NAFTA’s supposed to prevent that sort of thing, but we’re having one anyway:

Ricardo Alday, spokesman for the Mexican Embassy in Washington said pressuring politicians by hitting imports from states with key Democratic leaders with tariffs of up to 90 percent “is one the main considerations,” for the action, the Dallas Morning News reported Wednesday.

The official list of products has not been released, but a draft obtained by economist Dermot Hayes at the University of Iowa suggest the tariffs will pinpoint almonds from California, sunglasses from Illinois, bowling equipment from Nevada and books from New York — the home states of House Speaker Nancy Pelosi, President Barack Obama, Senator Majority Leader Harry Reid and U.S. Secretary of State Hillary Clinton.

And before you ask: yes, it’s because of the bill that Dina Titus (D-NV) said that she read.

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Obama Backtracks on Bungled Mexico Policy


You Would Hope The Democrats Did Not Intend To Have Mexico Slap Tariffs On U.S. Goods

President Bush’s critics often accused him of alienating key U.S. allies. Frequently that case was overstated, as the Bush Administration forged stronger bilateral ties with many strategically important allies, and as the Administration’s foreign critics were often engaged in faux outrage for domestic political purposes over purely symbolic issues. That said, at least when the Bush Administration set out to do something our allies didn’t like, it (1) did so to advance concrete U.S. interests and (2) stuck to its guns.

With the Obama Administration, neither is true. Fresh off a bizarre series of unnecessary gaffes in dealing with friend (the U.K.) and foe (Russia) alike, and after already rattling sabers and then caving on trade war threats with Canada and the EU, Obama and Congressional Democrats have brought us to the brink of a full-blown trade war with Mexico - and they are stuck trying to climb down from the ledge. Brian Faughnan has some of the background here; today’s news is the desperate scramble to avoid the consequences of the Democrats’ own policies as Mexico escalates with new tariffs for the Administration’s violation of our treaty obligations under NAFTA:

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Cap And Don’t Trade: Obama May Set Off Trade War With Climate Policy


As anyone who followed the Kyoto Protocols back in the 1990s can tell you, even if you believe that government action to stem carbon emissions would be desirable, Kyoto wasn’t a genuine effort to get a worldwide agreement on limiting emissions: it exempted seven of the world’s eight most populous nations (the U.S. being the lone exception) from its provisions, including rapidly growing economies like China (now the world’s number one carbon emitter) and India. And neither of those countries, with more than a billion inhabitants each, has any intention of being subject to the kinds of restrictions that President Obama’s carbon emissions “cap-and-trade” plan would impose on U.S. industries, much less during a global recession. Including industries that employ lots of the blue-collar union workers the Democrats purport to represent.

Those industries’ and unions’ solution, naturally, is even more government taxes and regulations: use trade barriers to try to inflict the same harm on foreign manufacturers as on American ones. Hey, why not start a trade war? Just remember, one thing, though: Senator Smoot and Congressman Hawley both lost their bids for re-election in 1932.

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The trade war that the Democratic Congress is inviting


Canadian unions are urging retaliation against a Buy America provision:

Two of Canada’s largest unions are urging the federal government to adopt a Buy Canadian policy similar to the proposal that has been criticized in the United States.

The Europeans and the Chinese haven’t kicked in yet. President Obama and the Democrats in Congress are standing at the edge of a precipice, trying to decide whether to jump and further damage our economy.

H/T Greg Mankiw.


“Buy American”: Obama Walks a Knife-Edge On Trade


Obama has been walking back his rhetoric on trade protectionism. Specifically, the “Buy American” clause in the fiscal stimulus bill now under debate in the Senate.

Think about it. We’re getting ready to borrow trillions of dollars that our children will need to repay some day. We’re going to give it to the governors of the fifty states, to spend on teacher salaries, Medicare and Medicaid, condoms, candy and bubble gum, new paint and computers for government buildings, a vast array of left-wing spending priorities, and a small number of roads and bridges.

Doesn’t it make sense to keep as much of that money here, and keep it from leaking out to other countries?

Well, the $650 million that Nancy Pelosi wanted to spend on condoms would just have to leak away. Condoms are made in China. But what about the steel and other building materials for the roads and bridges? Doesn’t it make sense to reserve as much as that spending as possible for American companies?

Ask your average person on the street, or certain Democratic Senators, and the answer would be some hyper-vigorous form of YES.

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