Indeed. I can't design and manufacture my highly durable and profitable equipment in an over-regulated country trying to compete against China who has little regulation.
Just remember, how is Vietnam still violating trade rules. 0% tariffs mean nothing if they are still shipping things via other countries. Which they are.
Never forget this; they is our agreements with other countries against us whether it be monetary or simple shit like bribing ports.
The clowns in the EU/UK love to regulate US Beef, while ignoring the general trend in the US of hormone free (and anti-biotic free) beef production. The US produces 2 million tons of hormone free beef (on the conservative side). The UK produces 900,000 tons of hormone free beef.
Yet, we still hear about US beef not being up to UK standards. Apparently it doesn't matter that there is something like a $2.50 a pound tariff on US beef exports to the UK...it's all some safety standard.
It's all very dumb The UK (and EU) tax the heck out of their farmers and constantly harass them on global warming manias. While at the same time, they want to give them protected markets to sell subsidized products in the UK (and EU).
Great point about subsidies. The agriculture lobby is the most powerful and the most insidious. They create useless or harmful products from thin air then lobby the DC politicians to mandate them or protect them. For example, ethanol. A "biofuel" we're told that saves the environment. 16 billion gallons annually, is subject to subsidies and mandates. Yet, ethanol is inefficient - so inefficient that it significantly reduces the miles-per-gallon for every automobile - meaning more gasoline is being burned to drive less miles, the exact opposite of what is promised. But hey, Cargill, Archer-Daniels-Midland, et al, created a product out of thin air that has grown to be the #2 use for corn and produces no discernable benefit at all.
Another example is high-fructose corn syrup, which is the #1 cause of the obesity epidemic plaguing the country and overwhelming the health care system with cancers, heart disease, and diabetes. You'd think this product would be Public Enemy #1 for JFK, Jr. But you'd be wrong. The AG lobby is too powerful, even for him. So he's is pushing to ban food dyes instead, an ingredient which appear in microscopic quantities but won't touch the most harmful ingredient in our food and the one that appears in the highest quantities.
So, yes. Aside from tariffs, Trump has a target-rich environment of useless or outright harmful subsides, regulations and laws. He appears fearless, so let's hope he uses the full arsenal to rebuild the US economy.
Another example. Japan has zero tariffs on imported US cars, but their regulations are a barrier just as onerous as tariffs. The countries with these trade barriers know *exactly* what they’re doing, and thankfully President Trump is the first one to call them out on it in a major way. Japan has already said that they are sending trade negotiators to Washington DC, and you can be sure they know which of their trade barriers are on the table.
EU's "80% Rule" is a great example of that. If a US based car company wants to sell cars under its label in the EU, it has to be 80% Designed and 80% manufactured in the EU, down to the plastic tabs that hold down interior side panels. Screws, nuts, bolts, ALL of it. 80%.
Totally agree re. stripping out regulation. Trump did a lot of that in his first term, and there are more opportunities.
So much of our current economy has built in "subsidies" from competition choking regulations, outright grants, income and other government benefits. I am skeptical that Congress will be brave enough to address many of these--esp. given their recent inability (for years!) to pass true programmatic budgets.
That said, seems to me that Trump and his team have a detailed multi-pronged plan. The tariff impositions are just part of the plan. Great news that 10 year bond is up (yields down) saving us a lot on the huge amount of debt we have to refinance this year.
Someone got mad at me on social media and asked if I don't care about people's 401ks and I responded:"Since when do people day trade their 401ks? If you're not day trading it, don't worry about the noise in between quarters and years and decades."
Jeffrey, I normally agree with most of your points but the distinction of the airline industry can be traced in a straight line to Peanut Farmer Carter’s abolishing of the CAB. Prior to then airline travel was hallmarked by outstanding service and value for the money. Even in Economy you were not stuffed into the cabin Luke sardines, and they served hot meals in most flights and the crew were professional in service and appearance. Plus you had outstanding regional carriers like Braniff, PSA, Hughes Air, along with the international carriers Pan Am. TWA. Not to mention great equipment like the L-1011 and 747 on domestic flights. Just my thoughts.
Indeed. I can't design and manufacture my highly durable and profitable equipment in an over-regulated country trying to compete against China who has little regulation.
Have a friend who manufactures in China. He's flying to Vietnam soon.
Just remember, how is Vietnam still violating trade rules. 0% tariffs mean nothing if they are still shipping things via other countries. Which they are.
Never forget this; they is our agreements with other countries against us whether it be monetary or simple shit like bribing ports.
Best of luck to him!
The clowns in the EU/UK love to regulate US Beef, while ignoring the general trend in the US of hormone free (and anti-biotic free) beef production. The US produces 2 million tons of hormone free beef (on the conservative side). The UK produces 900,000 tons of hormone free beef.
Yet, we still hear about US beef not being up to UK standards. Apparently it doesn't matter that there is something like a $2.50 a pound tariff on US beef exports to the UK...it's all some safety standard.
It's all very dumb The UK (and EU) tax the heck out of their farmers and constantly harass them on global warming manias. While at the same time, they want to give them protected markets to sell subsidized products in the UK (and EU).
Great point about subsidies. The agriculture lobby is the most powerful and the most insidious. They create useless or harmful products from thin air then lobby the DC politicians to mandate them or protect them. For example, ethanol. A "biofuel" we're told that saves the environment. 16 billion gallons annually, is subject to subsidies and mandates. Yet, ethanol is inefficient - so inefficient that it significantly reduces the miles-per-gallon for every automobile - meaning more gasoline is being burned to drive less miles, the exact opposite of what is promised. But hey, Cargill, Archer-Daniels-Midland, et al, created a product out of thin air that has grown to be the #2 use for corn and produces no discernable benefit at all.
Another example is high-fructose corn syrup, which is the #1 cause of the obesity epidemic plaguing the country and overwhelming the health care system with cancers, heart disease, and diabetes. You'd think this product would be Public Enemy #1 for JFK, Jr. But you'd be wrong. The AG lobby is too powerful, even for him. So he's is pushing to ban food dyes instead, an ingredient which appear in microscopic quantities but won't touch the most harmful ingredient in our food and the one that appears in the highest quantities.
So, yes. Aside from tariffs, Trump has a target-rich environment of useless or outright harmful subsides, regulations and laws. He appears fearless, so let's hope he uses the full arsenal to rebuild the US economy.
But we can subsidize our way out of this!
https://www.smalldeadanimals.com/2025/04/07/drowning-in-debt-2/
Here is a good thread on the trade barriers that need to be fixed beyond having zero tariffs. https://xcancel.com/Saul_Sadka/status/1908636303501254955#m
Another example. Japan has zero tariffs on imported US cars, but their regulations are a barrier just as onerous as tariffs. The countries with these trade barriers know *exactly* what they’re doing, and thankfully President Trump is the first one to call them out on it in a major way. Japan has already said that they are sending trade negotiators to Washington DC, and you can be sure they know which of their trade barriers are on the table.
EU's "80% Rule" is a great example of that. If a US based car company wants to sell cars under its label in the EU, it has to be 80% Designed and 80% manufactured in the EU, down to the plastic tabs that hold down interior side panels. Screws, nuts, bolts, ALL of it. 80%.
Mon dieu, We are not protectionist...no...not us...hahahahaha
Great points today Jeff.
Totally agree re. stripping out regulation. Trump did a lot of that in his first term, and there are more opportunities.
So much of our current economy has built in "subsidies" from competition choking regulations, outright grants, income and other government benefits. I am skeptical that Congress will be brave enough to address many of these--esp. given their recent inability (for years!) to pass true programmatic budgets.
That said, seems to me that Trump and his team have a detailed multi-pronged plan. The tariff impositions are just part of the plan. Great news that 10 year bond is up (yields down) saving us a lot on the huge amount of debt we have to refinance this year.
EU has just essentially capitulated.
Someone got mad at me on social media and asked if I don't care about people's 401ks and I responded:"Since when do people day trade their 401ks? If you're not day trading it, don't worry about the noise in between quarters and years and decades."
Chalk talks
An extensive list of market limiting regulations (foreign) in The Big Red Car blog today.
Jeffrey, I normally agree with most of your points but the distinction of the airline industry can be traced in a straight line to Peanut Farmer Carter’s abolishing of the CAB. Prior to then airline travel was hallmarked by outstanding service and value for the money. Even in Economy you were not stuffed into the cabin Luke sardines, and they served hot meals in most flights and the crew were professional in service and appearance. Plus you had outstanding regional carriers like Braniff, PSA, Hughes Air, along with the international carriers Pan Am. TWA. Not to mention great equipment like the L-1011 and 747 on domestic flights. Just my thoughts.