{"id":10418,"date":"2018-09-17T12:46:33","date_gmt":"2018-09-17T12:46:33","guid":{"rendered":"https:\/\/litci.org\/en\/?p=10418"},"modified":"2018-09-17T12:46:33","modified_gmt":"2018-09-17T12:46:33","slug":"trump-intensi%ef%ac%81es-trade-and-class-war","status":"publish","type":"post","link":"https:\/\/litci.org\/en\/trump-intensi%ef%ac%81es-trade-and-class-war\/","title":{"rendered":"Trump intensi\ufb01es trade and class war"},"content":{"rendered":"<p>Donald Trump is increasing his war on the economic attacks with a proposed bilateral US-Mexico trade deal that replaces the US-Mexico-Canada North American Free Trade Agreement (NAFTA). This forces Mexico to make new concessions, while demanding of Canada, if they are to join, substantial changes to their economic relations \u2013 to the bene\ufb01t of the US.<!--more--><br \/>\nPeter Windeler \u2013 ISL, Britain<br \/>\nEarly this year Trump announced that tariffs would be placed on imports of steel (25%) and aluminium (10%) with effect from 23rd March. China has accused the US of launching the biggest trade war in history with US imposed tariffs of $50bn on China covering steel and aluminium imports. China has retaliated by placing tariffs on soya beans, cotton, corn, tobacco and cars.<br \/>\nThis signi\ufb01es that capitalism was unable to negotiate its rules between countries. The World Trade Organisation \ufb01xes the rules of trade and the latest round of negotiations, the \u201cDoha Round\u201d, has been unable to get agreement despite taking seventeen years. The net result may be an overall drop in world growth of 1% and a lowering of US growth by 5%.<br \/>\nBut tariffs will have con\ufb02icting results inside the US making its position worse \u2013stoking the \ufb01res of future con\ufb02ict.<br \/>\nDonald Trump is not alone in wanting to impose tariffs on steel. George W. Bush tried the same measures in 2003 and the American equivalent of Jeremy Corbyn, Bernie Sanders, a Vermont Senator, who ran for the Democratic presidential candidate, has said that he supports the tariffs.<br \/>\nWhile Trump says that, \u201c\u2026trade wars are good, and easy to win\u201d, a Princeton Professor argues that the US has declared war on the trade system.<br \/>\nTrump promised in his Presidential election campaign to impose tariffs, this was welcomed in the \u201crust-belt\u201d states of Ohio, Pennsylvania and Indiana. But his stance has led to the resignation of his top economic advisor, Gary Cohn.<br \/>\nEven a high pro\ufb01le company like Harley-Davidson is closing its Kansas City factory as trade tariffs will increase the cost of US production. Now many more big companies are threatening to move production to international plants.<br \/>\nIn the UK, where the steel industry has been \ufb01ghting for survival, tariffs may prove fatal because 7% of production (350,000 tons) is exported to the US.<br \/>\nOther countries that will be affected are the rest of the EU, Brazil, Japan and South Korea.<br \/>\nThe prospect of a deepening trade war, slowing growth and emerging debt crisis in some countries exposes the great fault lines of imperialism post 2008.<br \/>\nWhat Trump is trying to do, in conflict with some powerful sections of US business, is to re-structure the world economy for the bene\ufb01t of US big business and to increase its monopoly, as happened after the crisis of 2008 \u2013 that is an even greater centralisation of \ufb01nance capital. But all production, wherever in the world, must follow the law of productivity of labour. Steel is being produced outside of America more ef\ufb01ciently \u2013 essentially with higher labour productivity. Economic nationalism will lower productivity.<br \/>\nTrotsky, in the 1930s when discussing the economic nationalism of Germany and Italy, compared the attempts to solve the problems of capitalism with nationalism as being like the legend of Procustes, the Greek robber who either stretched or chopped his captives\u2019 legs, to \ufb01t his bed where he forced them to lay.<br \/>\nTariffs will also lead to in\ufb02ation as the costs of production increase but their value does not. In\ufb02ation is an expression of the disordered internal relations within capitalism.<br \/>\nTrotsky spoke of the US as the most perfect type of capitalist development. It had a large internal market and technological and economic superiority compared to its main rivals in Europe.<br \/>\nThe tendencies for monopoly and control by \ufb01nance capital continued in the post war period. And after the 2008 crash, in spite of all the talk about banking regulation, the banks have become even more powerful.<br \/>\n\u201cThe consolidation of the banking industry after the \ufb01nancial crisis of 2008\u2026between 1992 and 2017, the number of commercial banks in the Unites States has decreased from 11,463 to 5,796 or approximately -49%&#8230;there is a total of 122 large and giant banks that collectively control 82% of all commercial bank assets\u2026the four largest US banks hold about a 41% share of total bank assets in 2017.\u201d\u00b9<br \/>\nThe US still has economic might and military strength. And has sought to solve economic problems by political, economic or military means (in the post war period in local, regional or proxy wars).<br \/>\nThe US has used the crisis over North Korea to set up a missile system, which can keep a close watch over the whole of China. Capitalist logic is that military war or the threat of it accompanies trade war.<br \/>\nBut even with such concentrated power the situation has changed. The US\u2019 technical edge has been dulled, compared to China, Japan, and a host of newly industrialised nations.<br \/>\n<strong>Trade war: no solution for workers <\/strong><br \/>\nWorkers in the UK should not side with the advocates of trade war.<br \/>\nThe increasing instability in the world, the EU and UK will mean the ruling class will combine austerity with Brexit and the effects of trade war, under the slogan \u201cwe are all in it together\u201d, to make workers pay for their crisis.<br \/>\nThe only real solution is for the masses of the world to make the multinationals correspond to human needs.<br \/>\nAt the moment Trump is attempting to act like Archimedes and uses America as the spot where he will turn the world over \u2013however, his efforts will prove fruitless.<br \/>\nOnly the working class can defend itself, and its best and only lasting defence is a mass struggle for socialism and destruction of ruling class power.<br \/>\nA successful workers revolution in one country, would inspire similar events around the globe. Very quickly, with cooperation, production can be organised to meet everyone\u2019s needs.<br \/>\nNotes<br \/>\n\u00b9 lavozlit.com\/what-is-imperialism-a-marxist-understanding-part-1\/<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Donald Trump is increasing his war on the economic attacks with a proposed bilateral US-Mexico trade deal that replaces the US-Mexico-Canada North American Free Trade Agreement (NAFTA). This forces Mexico to make new concessions, while demanding of Canada, if they are to join, substantial changes to their economic relations \u2013 to the bene\ufb01t of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10419,"menu_order":883,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"litci_post_political_author":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3565,3498],"tags":[5500,20],"class_list":["post-10418","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-north-america","category-usa","tag-trade-war","tag-trump"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Trump intensi\ufb01es trade and class war - International Worker&#039;s League<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/litci.org\/en\/trump-intensi\ufb01es-trade-and-class-war\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump intensi\ufb01es trade and class war - International Worker&#039;s League\" \/>\n<meta property=\"og:description\" content=\"Donald Trump is increasing his war on the economic attacks with a proposed bilateral US-Mexico trade deal that replaces the US-Mexico-Canada North American Free Trade Agreement (NAFTA). 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