Thursday, September 21, 2023

Life is full of tradeoffs: If we support American workers with trade restrictions it might mean more inflation

See U.S. Plans New Tariffs on Food-Can Metal From China, Germany and Canada: Levies announced in response to dumping allegations could raise canned food prices, industry group says by Yuka Hayash of The WSJ. Excerpt:

"The case put the Biden administration in the middle of two conflicting policy goals. It has adopted what it calls a “worker-centric trade policy,” supporting U.S. manufacturers and union workers. At the same time, the administration doesn’t want to add any fuel to inflation, which is expected to be a point of attack for Republicans in the 2024 elections. 

The Consumer Brands Association, a trade group representing companies such as Campbell Soup and Fresh Del Monte Produce, estimated new tariffs, if applied aggressively, could raise the prices of canned food by up to 30%."

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