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S. Korea has a free trade agreement with the US, It charges zero tariffs, but TACOs coming in August [1]
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Date: 2025-07-07
TACO Trump did a Tariff Trump this week. South Korea has a free trade agreement with the U.S. It charges zero tariffs on nearly everything. Why impose tariffs simply to escalate a meaningless ‘war’.
The new tariff shake-down will eventually recede with more TACO behavior in August.
OTOH Scott Bessent worked for George Soros; take note, you MAGAs. It is the same stupid Trump policies plus random noise.
TRUMP: “They're going to be tariffs. The tariffs are going to be the tariffs.”
x The White House appears not to know its only tariff policy. The letters say that country-specific tariffs apply "separate from All Sectoral Tariffs," which sounds more like "in addition to," than "instead of." But they're telling journos these tariffs don't "stack" ¯\_(ツ)_/¯ — Justin Wolfers (@justinwolfers.bsky.social) Jul 7, 2025 at 5:05 PM
x #TACO #TrumpTariffs #TrumpRecession #TrumpInflation
Trump announces steep tariffs on 14 countries starting Aug. 1 Goods imported to the U.S. from Japan, South Korea, Malaysia, Kazakhstan and Tunisia are now set to face 25% tariffs
cnb.cx/4ktSA49
[image or embed] — deebelz.bsky.social (@deebelz.bsky.social) Jul 8, 2025 at 2:41 AM
Korea has a free trade agreement with the U.S. It charges zero tariffs on nearly everything.
Trump and US commerce secretary say tariffs are delayed until 1 August
x The U.S. is imposing a 25% tariff on Korea because of trade deficits that it claims are "engendered by Korea's Tariff and Non Tariff, Policies and Trade Barriers." But Korea has a free trade agreement with the U.S. It charges zero tariffs on nearly everything.
[image or embed] — Justin Wolfers (@justinwolfers.bsky.social) Jul 7, 2025 at 5:29 PM
GEMINI: History provides few clear-cut examples of unequivocally successful tariff war policies that achieved their stated goals without significant negative consequences for all parties involved. While tariffs can sometimes achieve specific, limited objectives, broader "tariff wars" often lead to retaliatory measures, reduced global trade, and economic harm.1 Here's a breakdown of common outcomes and some nuanced examples: Common Outcomes of Tariff Wars Retaliation: The most common response to tariffs is for the targeted country to impose their own tariffs on the aggressor's goods. This escalates the "war" and broadens the negative economic impact. 2
Reduced Trade: Tariffs increase the cost of imported goods, making them less competitive. 3 This often leads to a decrease in both imports and exports for the countries involved, shrinking overall trade volumes. 4
Higher Costs for Consumers and Businesses: Domestic consumers often face higher prices for imported goods and products that rely on imported components. 5 Businesses may see increased input costs, reduced sales, and disruptions to their supply chains. 6
Economic Slowdown: The cumulative effect of reduced trade, higher costs, and uncertainty can lead to slower economic growth, job losses, and even recession. 7
Diversion of Trade: Instead of producing goods domestically, companies might shift production to other countries not subject to the tariffs, or consumers might seek alternative suppliers.8 Nuanced Examples and Limited Successes While full-scale tariff wars generally prove detrimental, some instances show tariffs achieving limited, specific goals, though often with unintended consequences:9 Early U.S. Tariffs (Revenue Generation): In the early history of the United States, tariffs were a primary source of federal revenue. 10 While not a "war" in the retaliatory sense, they were a significant aspect of trade policy. However, as the economy grew and other forms of taxation emerged, their role in revenue generation diminished.
Protection of "Infant Industries": The idea of using tariffs to protect nascent domestic industries until they can compete globally is a long-standing economic argument. 11 Some historical examples, particularly in the 19th and early 20th centuries, are cited where tariffs may have helped specific industries grow. However, this often came at the cost of higher prices for consumers and limited competition. 12
Toyota and the "Chicken Tax": In the 1960s, the U.S. imposed a 25% tariff (known as the "Chicken Tax") on imported light trucks.13 This tariff is sometimes cited as a reason why foreign automakers like Toyota eventually chose to build manufacturing plants in the U.S., creating American jobs and boosting local economies, rather than paying the high import duties. This is a targeted example where a tariff seemingly led to domestic investment, although it wasn't a full "trade war." Unsuccessful and Damaging Examples Many historical examples highlight the negative consequences of aggressive tariff policies: The Smoot-Hawley Tariff Act (1930): This is perhaps the most infamous example of a disastrous tariff policy. 14 Enacted by the U.S. in an attempt to protect American farmers and industries during the onset of the Great Depression, it triggered widespread retaliatory tariffs from other countries. This significantly reduced international trade and is widely considered to have worsened the Great Depression globally. 15
German-Polish Customs War (1925-1934): This protracted trade conflict between Germany and Poland involved both sides imposing high tariffs. 16 While it forced Poland to develop its own port (Gdynia) to bypass German transit, it ultimately harmed the economies of both nations.
Recent U.S.-China Trade Tensions (2018-present): The imposition of tariffs by the U.S. on Chinese goods, and China's subsequent retaliation, led to increased costs for businesses and consumers in both countries, supply chain disruptions, and economic uncertainty.17 While some companies have explored relocating supply chains, the overall economic impact has been largely negative. In conclusion, while specific tariffs might achieve narrow objectives or influence business decisions, broad tariff wars tend to be self-defeating, leading to a net loss for all involved and often straining international relations.18 The prevailing consensus among economists is that free and open trade generally fosters greater economic prosperity.19
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In other chaos.
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