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nostromotoday at 5:05 AM4 repliesview on HN

Until very recently, tariffs on American cars sold in China were much higher than vice-versa. The new US tariffs were an attempt to even the playing field.

I think most people would agree that no tariffs would be good, but China is more protectionist than any other major economy, including recent changes in US policy.


Replies

pear01today at 5:24 AM

True enough but really this boils down to we are just doing what they are doing. The reason they had it higher for longer was because for longer the situation was reversed, our cars were better. Now they have surpassed us and don't really need protection. We didn't before either, so it was a moot point. Now we do, so we do the same thing.

The point however is that the United States is supposed to operate under a different model than China. The reason to bring up the ways we act the same is then to find clarity in the contradiction.

This is essentially the same tension that runs through much of modern American discourse. It's never welfare if the beneficiary is a rich CEO at a corporation, only if it's a family in poverty. It's not like Chinese cars can't employ American workers just as Japanese and other foreign automakers do.

To my mind then, I think it's less about reciprocity and more about corporate welfare. Putting aside ICE automakers, there is also a very obvious individual who turned conspicuously political as of late who owes a great deal of his fortune to the expectation that his electric car company will one day rule the world. It would be quite embarrassing for even him if demand for his vehicles suddenly got demolished on his own turf. I would think he and others would be willing to spend a small fortune to keep the political needle tipped in their favor on this issue, the average consumer be damned.

At some level there is nothing wrong with such naked self interest. I just prefer we be honest about it, as only then can we really analyze it.

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Al-Khwarizmitoday at 8:14 AM

Yes, but China has always been straightforward in that they believe in protectionism. It's part of their system.

In contrast, in the West (at least until a few years ago), we have been fed the discourse that free market without protectionism is the best model, and protectionist countries are sabotaging themselves. And I don't know how it was in the US, but in the EU this caused hardship to many people. Entire countries pretty much sacrificed whole industries to the free market gods, because it was more efficient to bring the merchandise from elsewhere. Opponents who were defending their livelihood were framed as reactionaries that were opposing +X% GDP gains or didn't want "free competition" (often against products with unbeatable prices due to being made in countries with totally different rules and labor standards).

Now it seems that the system that supposedly was so bad gives an unfair advantage, so if others apply it the only defense is to apply it as well... but the free market apologists won't shut up anyway, in spite of the obvious cognitive dissonance.

joe_mambatoday at 6:20 AM

> but China is more protectionist than any other major economy, including recent changes in US policy.

Not true. China let Tesla set up shop in the backyard of their domestic EV industry, WITHOUT the mandatory by law 51% Chinese ownership, precisely so Tesla would light a fire under the asses of domestic players, forcing them to compete better with what was at the time, the pinnacle EV brand.

China is no longer beating us with protectionism but with innovation and manufacturing. People better wake up.

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mmoosstoday at 6:02 AM

> The new US tariffs were an attempt to even the playing field.

That's a guess at the White House's thinking. They've been using every form of coercion in international relations, including economic (tariffs), military, and diplomatic. That's a factual basis for divining their reasoning.

Their words are not a factual basis - they can say anything and clearly will. Everyone who does those things provides justifications - Putin was helping oppressed Russians in Ukraine and stopping fascism, for example. Taking them at face value is not a serious analysis.