The Trump administration and the Republicans that enable it do not understand that disrupting value chains does not get you the benefits in terms of shifting the terms-of-trade in your favor that (with no retaliation) tariffs can in the "optimal tariff" literature when levied on finished goods: Chad P. Bown: "BMW says it will build more of its SUVs overseas and NOT IN SOUTH CAROLINA because of China’s retaliation on US autos in response to Trump’s tariffs..."
#shouldread
