Image Credits: Ganache Patisserie
Chinese steel subsidies, and the world’s grossly distorted metals market, became front-page news recently as President Trump announced new tariffs to level the playing field and salvage U.S. jobs.
So-called free-trade advocates howled and are fighting harder against the president of the United States than they ever did against China for manipulating the market in the first place.
News flash to these critics: Free trade isn’t free when one side subsidizes its product to distort prices. Price mechanism, without subsidies, is the fundamental tool that makes the free market work.
Steel might be getting all the headlines today, but it’s hardly an isolated example. Many of the same groups fighting President Trump on steel are currently lobbying lawmakers to reward foreign subsidizers to the detriment of U.S. workers in the world of sugar, too.