Too much histrionics regarding tariffs

Too much histrionics regarding tariffs

We are being swamped with opinions on what the new tariffs are going to mean with the common consensus being that the sky is falling in. Rather than add to the panic perhaps it is worth standing back and taking a different, less emotional perspective.

Tariffs usually are motivated by politics rather than the pursuit of free trade. They are inefficient in a strict economic sense but they can be politically useful as a method of protectionism, especially when countries are being disadvantaged by other forms of market intervention such as export subsidies, quotas and even outright bans. So, it is wrong to demonise tariffs alone saying that they should never be imposed.

Every country intervenes to some extent in trade with political or fiscal intent. Look at the restrictions on imports into the EU as the most obvious example. Also, we have seen plenty of evidence of China's malfeasance over the years. Why should we describe the US actions in such evil terms because it has decided to make a stand and do what others do? We might not like it, but let us not panic.

To see the over dramatisation all you have to do is listen to the hyperbolic rant of Ursula von der Leyen, saying that there will be "immense consequences", the world economy will "massively suffer" and "the consequences will be dire". I think there is no need to be so dramatic.