President Reagan decided Friday to impose punitive 100% tariffs on a wide variety of goods produced by Japanese electronic giants in retaliation for Tokyo’s failure to abide by the semiconductor trade agreement between the two nations.
In approving a recommendation Thursday by the Administration’s top economic officials, the White House decided to put the tariffs into effect about April 17, less than two weeks before Japanese Prime Minister Yasuhiro Nakasone is scheduled to begin a visit to the United States aimed at easing trade frictions.
The tariffs will be targeted to bring in as much as $300 million and designed to punish such firms as NEC Corp., Hitachi Ltd., Fujitsu Ltd., Toshiba Corp. and Oki Corp. by either pricing some of their goods out of the American market or by forcing them to accept substantial losses on U.S. sales.
Japan / Korea were early instances of US industrial outsourcing. The consequences of the project was an economic boom during late 70s/early 80s in both countries, such that American politicians feared Japan and Korea would return to the world stage as independent regional powers. Reagan’s tariffs, the subsequent opening of Japanese import markets, and the further industrial outsourcing to China, the Philippines, and the rest of the South Pacific labor markets effectively clipped the wings of the Japanese/Korean wage laborer.
You could argue this was part of the “agreement” between Eastern Zaibatsu executives and Western investment banks. But I’d hardly call it a “measured response”. I certainly wouldn’t call it a policy that served the best interests of either Eastern or Western wage labor.
Back in your day needless tarriffs weren’t a thing.
Um, Aktuky…
President Reagan decided Friday to impose punitive 100% tariffs on a wide variety of goods produced by Japanese electronic giants in retaliation for Tokyo’s failure to abide by the semiconductor trade agreement between the two nations.
In approving a recommendation Thursday by the Administration’s top economic officials, the White House decided to put the tariffs into effect about April 17, less than two weeks before Japanese Prime Minister Yasuhiro Nakasone is scheduled to begin a visit to the United States aimed at easing trade frictions.
The tariffs will be targeted to bring in as much as $300 million and designed to punish such firms as NEC Corp., Hitachi Ltd., Fujitsu Ltd., Toshiba Corp. and Oki Corp. by either pricing some of their goods out of the American market or by forcing them to accept substantial losses on U.S. sales.
So a specific tariff, on specific goods in a specific country, for a specific reason. Really not comparable.
Was that not a measured response to a failure to abide by an established agreement?
Depends on who is telling the story.
Japan / Korea were early instances of US industrial outsourcing. The consequences of the project was an economic boom during late 70s/early 80s in both countries, such that American politicians feared Japan and Korea would return to the world stage as independent regional powers. Reagan’s tariffs, the subsequent opening of Japanese import markets, and the further industrial outsourcing to China, the Philippines, and the rest of the South Pacific labor markets effectively clipped the wings of the Japanese/Korean wage laborer.
You could argue this was part of the “agreement” between Eastern Zaibatsu executives and Western investment banks. But I’d hardly call it a “measured response”. I certainly wouldn’t call it a policy that served the best interests of either Eastern or Western wage labor.