Trump Mulls 6-Month Window for EU, Japan to Curb Auto Sales – Bloomberg

One paragraph in this Bloomberg article boggles the mind:

`A report by the Commerce Department had found that America’s innovation capacity “is now at serious risk as imports continue to displace American-owned production.” Trump was facing a May 18 deadline to make a decision on auto tariffs. “The lag in R&D expenditures by American-owned firms is weakening innovation and, accordingly, threatening to impair our national security,’’ according to the draft executive order.’

So, US companies under-invest in R&D, put out lower quality and/or undesirable cars, Americans buy quality and desirable cars from companies that do invest in R&D (BMW, Toyota), and now we need to apply tariffs to the cars Americans purchase because of “national security”??? Meanwhile, we de-invest in education at home and restrict immigration of hard working and skilled labor. Oh, and American consumers bear the costs of tariff’s (see this article: HTML).

Pardon the pun here, but I hope that vision will clear and delusion will subside in “2020.”

-Dr. Moore

https://www.bloomberg.com/news/articles/2019-05-15/trump-weighs-6-month-deadline-for-eu-japan-to-curb-auto-exports

Trump Mulls 6-Month Window for EU, Japan to Curb Auto Sales

Jenny LeonardMay 15, 2019, 6:24 PM PDT
Photographer: Qilai Shen/Bloomberg

David J. Moore, Ph.D.
Associate Professor of Finance
California State University, Sacramento
david.j.moore

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