About a week and a half ago the Economist published an article about the retaliatory actions of the European Union and China against the tariffs imposed by the Trump administration. Of course last week we had a theme of sorts with lineages and ancestry. So this week, back to the fun stuff.
What makes today’s piece particularly relevant is that over the weekend, Trump announced he might increase the tariffs proposed, but not yet implemented, upon Chinese goods. So some economists looked at the retaliatory tariffs proposed by the EU and China.
Each targets Trump voters, albeit of different types. But China appears more willing to engage in a brutal fight. Its tariff proposal would not just harm Trump voters, but would also harm Chinese citizens. The EU’s plan appears tailored to maximise the pain on Trump voters, but minimise that felt by its own citizens.
A few minor points. I like how the designers chose to highlight high impact categories with colour. Lower impact shares are two shades of light grey. But after that, the scale changes. I wonder how the maps would compare if each had been set to the same scale. It looks doable as the bottom range of the maximum bin is 6% for the EU and 8% for China. (Their high limit is much higher at 22% compared to the EU’s 10%.)
That said, it does a good job of showing the different geographic footprints of the two retaliatory tariff packages. Tomorrow—barring breaking news—we will look at why that is important.
Credit for the piece goes to the Economist Data Team.
Yesterday we looked at trade with China. Today, we look at Canada, allegedly ripping off America. But what does the data say? Thankfully the Washington Post put together a piece looking at just that topic. And it uses a few interesting graphics to explore the idea.
The easiest and least controversial graphic is that below, which breaks down constituent parts of our bilateral trade.
Note that the graphic does not just show the traditional goods part of the equation, but also breaks out services. And as soon as you consider that part of the economy the US trade deficit with Canada turns from deficit into surplus.
But the graphic also uses a pair of maps to look at that same goods vs. goods and services split.
Parts of the design of the map like the colours, meh. But the designers did a great job by breaking the standard convention of placing the Prime Meridian at the centre of the map. Instead, because the United States is the story here, the map places North America at the map’s centre. It does lead to a weird fracturing of the Asian continent, but so long as China is largely intact, that is all that matters to the trade story.
This all just goes to show that it is important to begin a conversation about policy with facts and understand the actual starting point rather than the perceived starting point.
Unless you avoid the news, we all heard a lot about tariffs this weekend. So this morning, instead of going with some other things I found, I decided I wanted to look and see just what the data is on tariffs. Turns out Trump is wrong on the data about tariffs. In short, in 2016 the US had a slightly higher average tariff for all products at 1.61%. The EU was at 1.6%. And the Canadians? They charged an outrageous 0.8%.
The data comes from the World Bank.
And over breakfast, I did not really have the time to clean this graphic up, so it shows the whole world. Though it goes to show you, the western countries against which Trump raged this weekend generally have low tariffs, some lower than what the US.