Ontario Cuts Steel Exports To U.S. - Toyota Moves Entire Production Line to Canada

Ontario Cuts Steel Exports To U.S. - Toyota Moves Entire Production Line to Canada

  The logical consecuence of a totaly unnesesary trade war. Since thebeggar thy neighbour in 1930s.The "beggar-thy-neighbor" policies were a set of economic strategies adopted by countries during the Great Depression to alleviate domestic unemployment and economic hardship, often at the expense of their trading partners. These policies primarily involved protectionist trade measures and competitive currency devaluation.  

Key aspects of beggar-thy-neighbor policies during the 1930s:

• Protectionism:

  Countries implemented high tariffs and import quotas to protect domestic industries and jobs by making imported goods more expensive and less competitive.

In essence, beggar-thy-neighbor policies in the 1930s aimed to shift economic problems from one country to another, but the result was often a worsening of the global economic situation. According to the International Economic Law and Policy Blog, these policies are generally considered negative-sum for the world overall. 

 

• Competitive Devaluation:
  Countries devalued their currencies (reduced their value relative to other currencies) to make their exports cheaper and more attractive to foreign buyers, while simultaneously making imports more expensive.  
• General Negative-Sum Outcome:
  While these policies might have offered temporary relief to individual countries, the overall impact on the global economy was generally negative, as they led to retaliatory measures, reduced international trade, and worsened the depression.

Smoot-Hawley Tariff Act:

The US Smoot-Hawley Tariff Act of 1930, which significantly raised tariffs on many imported goods, is a prime example of a beggar-thy-neighbor policy.

Abandonment of the Gold Standard:

Many countries abandoned the gold standard, which had previously fixed the value of their currencies, to allow for greater flexibility in devaluing their currencies.

Retaliatory Measures:

Other countries often responded to beggar-thy-neighbor policies with their own protectionist measures and currency devaluations, leading to a cycle of trade wars and economic instability.

Honda and Toyota Canada Respond to Tariff Uncertainty as U.S. Bypasses Trade Pact Protections

For those that do not believe how important these elements are for production in our capitalist economy I can only just remember you to think what was the reason or one of the reasons for the First World War and a main step to create the Europe Union:

Europäische Gemeinschaft für Kohle und Stahl