It Could Happen Here The Economics of the Tariff Regime
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Oct 22, 2025 Explore the intriguing world of steel tariffs as they reflect larger economic dynamics. Discover why measuring overcapacity is fraught with challenges, and delve into China’s role in global production. Unearth the connection between local government incentives and excess output, and investigate the implications of underconsumption. Mia poses tough questions about the global repercussions of protectionist policies and whether technology growth conceals deeper economic issues. Is a shift in wage relations the key to resolving these systemic problems?
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Steel Tariffs As Policy Emblem
- Steel tariffs are emblematic of current U.S. trade policy and have been unusually stable at high rates.
- The EU's move to match high tariffs shows converging protectionist responses to perceived global overcapacity.
Overcapacity Numbers Are Unreliable
- Measuring steel overcapacity is highly uncertain because utilization rates vary seasonally and for many reasons.
- Western and Chinese estimates diverge for political reasons, so headline numbers are suspect.
Cadre Incentives Inflate Production
- Local cadre performance incentives in China can drive pointless steel output to boost GDP figures.
- Those political incentives help explain baffling investment and persistent excess production.