Trump Plans To Impose 20% Tarrif On Canadian Softwood Lumber
Source: NewYork Times
Link not included because it's pretty much in every major newspaper. I first heard about it from NYT.
The new tax, and that's what it is, is supposedly being levied in retaliation for Canada subsidizing their softwood lumber products. Oddly enough, the U.S. government also subsidizes the U.S. lumber industry but don't let facts get in the way of Trump's protectionist charade. Also keep in mind that this is the same shitbag who wants to take away property rights from American citizens (through eminent domain) so a Canadian company (TransCanada) can export it's tar sands oil here, which will eventually find its way to foreign markets. To think Trump has any principled objection to Canada subsidizing it's lumber industry is laughable and naive; something consigned to mental incompetents who think public officials act from altruistic motives. Regardless of Trump's motives, the new tax on imported lumber serves a purely sentimental benefit for people with incoherent ideas about fairness. In the long run, consumers are always the losers in trade wars and it is American consumers who will pay this tariff in higher lumber and real-estate prices. Protectionism, like it's first cousin socialism, is based on the false notion that the government can create jobs and therefore wealth by taking money from one industry and giving it to another (i.e. the broken window fallacy). We might see a spike in domestic lumber production, but we won't see that there is less disposable income available for other industries. The net difference is zero when we take the latter into account.