Inflation, tariffs, and Iran

(Dan here…lifted from comments)

Barkley Rosser writes:

There are two things Trump did that added to inflation that Biden has somehow not undone yet. One of them is reversing the Trump tariffs, which he clearly fears doing because of opposition by Organized Labor and many white working-class voters in the crucial Rust Belt states. Some of them even support tariffs that hurt them personally, such as the autoworkers who lost their jobs at the Lordstown assembly plant in Ohio partly due to Trump’s steel tariff, but who reportedly supported it and him as well anyway.

The other thing is his failure to rejoin the JCPOA nuclear deal with Iran, which he should have simply done immediately upon taking office. But he went along with the idea of making demands on Iran to expand the deal such as limiting them from building missiles, which pretty much all experts warned they would not accept, and they have not. Now they are on the verge of having enough enriched uranium to make a bomb.

But rejoining the deal would have allowed for a relaxation of the economic sanctions against Iran, which have it producing only about half a million barrels of oil per day. Before sanctions were reimposed it was producing about two million more barrels per day than that, enough to really impact the global price of oil and help hold down gasoline prices. Instead, we have Biden running hat in hand to MBS in Saudi Arabia to beg him to increase oil production, which I suspect he will not do or do very much.