Tariffs


What special relationship Starmer? Capitalist protectionism is back in favour.

‘Britain will be hit by Donald Trump’s global tariffs, Downing Street has admitted for the first time, as hopes for a deal before the US president’s so-called “Liberation Day” fade. But there was a blow for Sir Keir today as Mr Trump confirmed that tariffs to be introduced on Wednesday will hit “all countries”. Stock markets tumbled around the world after the US president’s comments, with the FTSE 100 in London dropping by as much as 1.5p

The Prime Minister’s official spokesman said: “When it comes to tariffs, the Prime Minister has been clear he will always act in the national interest, and we’ve been actively preparing for all eventualities ahead of the expected announcements from President Trump this week, which we’d expect the UK to be impacted by alongside other countries.’

https://www.telegraph.co.uk/business/2025/03/31/ftse-100-markets-latest-news-trump-tariffs-putin-oil-russia/

UK automotive leaders are calling for immediate trade negotiations following the US government’s decision to impose a 25% tariff on imported vehicles, set to take effect next Wednesday. The move threatens a sector already facing declining sales and rising production costs.

The US is the UK’s second-largest car export market, valued at £7.6 billion. In 2023, over 101,000 UK-built vehicles—mainly premium and luxury models—were shipped to the US, accounting for nearly 17% of total car exports. The tariffs will hit major UK manufacturers, including Jaguar Land Rover, BMW, Toyota, Nissan, and Stellantis.

Jaguar Land Rover, which employs 11,000 people in the UK, relies on the US as its biggest overseas market. BMW’s three UK plants, which focus on Mini production and employ around 8,000 people, could also face significant cost increases. The US remains a key Mini market despite declining sales due to model changes.’

https://www.eastmidlandsbusinesslink.co.uk/mag/featured/uk-motor-industry-urges-urgent-talks-as-us-imposes-25-tariffs-on-car-imports/

The below from the Socialist Standard March 2025

‘Tariff’, Trump has repeated many times with typical exaggeration, ‘is the most beautiful word in the dictionary’. He seems to see it as a cure-all that will Make American capitalist manufacturing industry Great Again. This may just have been crude vote-catching but this illusion evidently caught the votes of quite a few workers.

A tariff is a tax on imported goods and is usually introduced to protect the profits of domestic producers of the same goods. These will have been complaining of being out-competed by ‘cheap imports’ and ‘unfair competition’ and will have lobbied politicians to do something about this. The tariff is paid by the businesses that import and sell the goods in question (it is not paid by the country from which the goods are imported, as Trump sometimes implies). In the first instance it is the importers who will be impacted. Because they will be making a smaller profit, they will import less and, in accordance with the law of supply and demand, the price of the good on which the tariff has been imposed will go up, whether imported or produced domestically. This will make domestic producers more competitive and so enable them to maintain or restore their profits.

This is obviously something that will appeal to the domestic producers concerned but what about other sections of the capitalist class? If the tariff-hit goods are sold to capitalist firms as materials or components for what they produce and sell, these firms will not be so happy as this will increase their costs. If they are consumer goods sold to workers this will increase the pressure on employers generally to pay higher wages (not to increase living standards, but simply to maintain them). If the consumer good is part of the basket of goods used to compile the consumer prices index, whose increase is regarded as a measure of ‘inflation’, then inflation in this sense will go up.

In terms of employment, the workers in the protected industry will keep their jobs for a little longer before automation catches up with them. On the other hand, some workers in other industries will lose theirs.

The overall effect of imposing a tariff will be to raise some prices and not just of the goods on which the tariff is levied. The main beneficiaries will be the domestic producers of the goods in question. Their profits will be ‘protected’.

However, there are other considerations. To be effective in protecting the profits of a particular sector, a tariff needs to be imposed not just on the good coming from one country but on it coming from any country; otherwise the importers of the good could still import it. Which will be why Trump has talked of imposing a tariff on some goods (steel and aluminium) wherever they come from. Another complication is that the country singled out will likely impose counter-tariffs which would harm sectors producing for export. The EU and China will be tougher nuts to crack than Canada or Mexico.

Although Trump gave the impression on the campaign trail that American manufacturing industry will expand and thrive behind protective tariff walls, his first use of tariffs has been as a bargaining tactic. To impose them and then open negotiations with the other capitalist state about what it needs to do to get them removed.

Tariff protection has unintended side-effects and, in any event, does not benefit all sections of capitalist business in the country imposing the tariffs. The working class of the country as a whole is not affected much either way, if only because their wages are tied to the cost of living and tend to go up or down as it does. It is not a working-class issue.’

https://www.worldsocialism.org/spgb/socialist-standard/2020s/2025/no-1447-march-2025/cooking-the-books-1-who-benefits-from-tariffs/


War psychosis

 

Do you see a trend here? In the first piece the EU Commissioner for Crisis Management is quoted as saying, ’We want people to be ready, not to panic’.

Panic is exactly the emotion TPTB are trying to instil in its populations. The Bogeyman is coming to get you and we’re the only ones who can save you. Providing, that is, that you subjugate your rights, freedoms and survival to us without question and become totally subservient to us. Not forgetting the willingness to sacrifice how ever many lives we care -we don’t care in reality,- to offer up in the pursuit of our crazy quest for our insane goals. That’s capitalism folks! Are we going to change it before they destroy the world and all of us in it?

The ‘leadership’ of Western Europe are displaying a visceral hatred of Russia and are intent on destroying it. We hold no special approval for Russia, it’s part of global capitalism, capitalism being what we want the majority who run it on behalf of the minority ruling class to replace with socialism.

The current idea of the Western European elites that they can instigate a war with Russia – and its allies – and win suggests that they are aware in in a conventional conflict they could not win. The alternative is to therefore use nuclear weapons, either tactical or strategic. At that stage no one wins.

Obviously, most of us are not so stupid as to welcome the idea of mass destruction and the end of life on earth so in the period when arms, equipment and resources are being built up the propaganda ‘war’ will begin to increase in intensity. Better Dead than Red! This propaganda ‘war’ has already begun and its effectiveness will be seen over a period of time.

The solution? An awareness and understanding of, desire for, and implementation of socialism as the only sane social system which will be beneficial to the whole human race. The choice is yours.

The European Union has advised its 450 million inhabitants to stockpile essential supplies sufficient for at least 72 hours, citing increasing risks of war, cyberattacks, climate change, and disease.

EU Commissioner for Crisis Management Hadja Lahbib stated on Wednesday that the warning reflects a broader strategy to improve civil readiness across the bloc. While not mentioning Russia specifically, she stressed that the Ukraine conflict threatens European security.

“For three years in Ukraine, we have seen a battlefield of bombs, and bullets, drones, fighter planes, trenches and submarines. Yes, our European security is directly threatened by this,” Lahbib said.

Several EU countries have consistently named Moscow as a significant threat to regional security. France, Poland, the Baltic states, and Finland have all raised concerns over alleged Russian cyberattacks, disinformation campaigns, and political interference. They have also described the Ukraine conflict as an example of aggressive behaviour that poses a military threat to the bloc.

Moscow has consistently denied any intention to attack NATO countries or the EU. Russian President Vladimir Putin has dismissed such claims as “nonsense” meant to scare European populations and increase military budgets.

“We want people to be ready, not to panic,” Lahbib said. “Preparedness is not fear mongering – it is common sense in a time of uncertainty.”

Under the strategy, the EU is advising households to keep essential supplies, including non-perishable food, bottled water, flashlights, batteries, first-aid materials, and key documents. Citizens are also encouraged to have access to a short wave radio in case of power or communication outages.

The EU is also planning to create a strategic reserve of key resources, including firefighting aircraft, medical transport, mobile hospitals, and stockpiles of protective equipment for chemical, biological, radiological, and nuclear incidents.

“Today’s threats facing Europe are more complex than ever, and they are all interconnected,” Lahbib said. “From war on our borders to increasingly frequent climate disasters, the EU must be ready to face the unexpected,” she added.

The initiative mirrors long-standing practices in countries such as Finland and Sweden, where civil defence preparations and emergency guidance are more established. Sweden, for example, recently updated its ‘If Crisis or War Comes’ handbook with modern scenarios, including how to respond to nuclear threats.

The Commission’s new plan includes the creation of an EU-level crisis hub to coordinate cross-border responses and ensure continuity of essential services, from healthcare to energy and telecommunications.’

‘Poland will urge its citizens to stockpile at least three days’ worth of supplies to prepare for a war or other crisis, Deputy Interior Minister Wieslaw Lesniakiewicz has said.

It comes after a proposal by European Commission President Ursula von der Leyen to push through an €800 billion ($875 billion) military build-up intended to counter an alleged threat from Russia, something Moscow has dismissed as unfounded.

Each citizen needs to be able to survive at least three days with no help from the state in the event of war or another extreme situation, Lesniakiewicz said. He urged Poles to stockpile supplies such as water, medicine, food, and power banks. People should also get transistor radios for emergency communication when other methods are unavailable, he added.

Polish ministries will cooperate to publish a guide on preparing for crises, basing it on a similar publication released in Sweden, he said.’

‘The German government should prepare hospitals across the country so that they are able to operate efficiently in case of a military conflict, Bavarian Health Minister Judith Gerlach has argued, citing a perceived threat from Russia.



In an interview to the Augsburger Allgemeine Zeitung the official claimed that the “military threat posed to Europe by Russia and the possible withdrawal of the new US President [Donald] Trump from the previous security partnership also mean a massive need for action on the part of the German healthcare system and the whole civil society.” She argued that simply beefing up the armed forces would not be sufficient to adequately address the challenge supposedly facing the country.

“We therefore need a comprehensive ‘civil operational plan Germany’” geared toward addressing a wide range of emergencies, including military aggression, Gerlach stressed.

According to the Bavarian health minister, in such a scenario Germany’s healthcare system would have to be prepared to provide services to more than 80 million civilian residents, as well as wounded military personnel.

“The state must set clear standards. This goes for the EU level, the federal and the regional [levels],” the official told the newspaper. She also emphasized the need to ensure Germany’s and the EU’s ability to produce all the medicines and drugs they may need.

Given likely personnel shortages in hospitals in case of a large-scale military conflict, Gerlach suggested that the German government should consider imposing mandatory civilian service, along with the military draft.

Moscow has consistently denied allegations that it intends to attack any NATO or EU member countries, labelling such claims as “nonsense” designed to scare people and justify increased defence budgets.’














Socialist Sonnet No. 187

Change

 

The deserving and undeserving poor

Will be forever with us so it seems,

At least as long as capitalism’s

Allowed to remain. Poverty and war

Are its indelible marks, that might be

Obscured for a while by some cosmetic

Concealer, liberally applied by a sleek

Politician, who’s not actually free

To do much else, as it’s accountancy

That must have the final decisive say

While capital continues to hold sway,

The determinant of philosophy.

It’ll not change the world unless and until

Real change has become the popular will.

 

D. A.

Growth? Erm…

 

“Now, however, Reeves’s advisers openly admit that the high growth implied by Labour’s manifesto is a pipe dream.” (The Times, 21 March)

Implied? No, promised, in fact proclaimed from the rooftops. If elected Labour would “grow” the economy.

Their excuse for failing (within a year!)?

“‘The world is changing,’ one says. ‘Global uncertainty means growth across the world – in the eurozone, the US and the UK – has been hit’.”

The SPGB has said repeatedly (and experience shows) that capitalism runs to its own uncontrollable economic cycle, so election promises are likely to evaporate in double-quick time.

https://www.worldsocialism.org/spgb/

Would you risk life for cheeseburgers?

Lord Kitchener is flexing his finger, When it’s rivalry and competition,

And the prospects of profit seduces. A radical change is required because

The price of peace is capitalism’s loss. A beckoning to come hither once more, Inducing young men and women to war. In the cenotaph memory lingers, Although it appears amnesia prevails When a call to the colours comes their way And they sleep-march towards their beds of clay; Too often, it seems, humanity fails. Enough now of the lame old excuses For yet another bellicose mission, When it’s rivalry and competition, And the prospects of profit seduces. A radical change is required because The price of peace is capitalism’s loss.’

https://soymb.com/2024/02/socialist-sonnet-no-134.html

It’s ill-mannered to point a finger at someone we were taught. It’s more ill-mannered to use a pointing finger to con, persuade, influence and sway young men to sign up and fight capitalism’s conflicts for it.

Lord Kitchener, Secretary of War during World War One was featured on a propaganda poster pointing his finger and exhorting, (threatening?) those viewing it. Under his picture were the words ‘Wants You. Join your country’s army! God save the king.’ This appeal to patriotism, or stupidity, was considered an effective way of persuading British young men to voluntarily enlist. Based on this original there were many other capitalist states who issued similar brainwashing images.

As of yet Ukraine hasn’t issued something similar under the heading Zelensky wants you to throw yourselves into the meat grinder that is the Ukrainian Russian conflict. It must surely only be a matter of time. Russians too are perishing unnecessarily.

Most people, apart from many European Union ‘leaders’ want to see an end to the senseless slaughter occurring in Ukraine. Amongst those who may wish otherwise the opportunity to profit from the EU projected eight hundred billion Euro war fund may be an an important consideration.

It now appears that Ukraine wants to add fresh victims to the conflict in order to ensure its continuation.

The real, and only, l resolution to present, and future, capitalist conflicts all over the world, is the abolish of capitalism and the implementation of socialism.

‘Ukraine must enlist more young men into its armed forces, as a number of units face a pressing need for reinforcements, according to the country’s leader, Vladimir Zelensky.

In a regular news briefing, Zelensky announced that the military leadership had approved an expansion of recruitment targeting citizens aged 18 to 24. While mandatory conscription applies to men over 24, the government is trying to encourage younger individuals to volunteer by offering an array of incentives.

“I visited the front on Saturday. There is a demand from specific brigades, and we will be responding positively to it. There will be more brigades employing young specialists,” Zelensky stated. “This initiative will extend to the National Guard and border guard units, as all effective defence forces should be given every opportunity to enhance their capabilities.”

Under a recruitment campaign launched in February, young adults are promised 1 million hryvnia ($24,000) for a year of military service, as well as free dental care and the option to leave Ukraine after fulfilling their contract – an option not available to regular fighting-age men.

The Defence Ministry is promoting the offer by showing how much recruits can buy with the money – equating it to 15,625 cheeseburgers or 185 years of Netflix subscriptions. Critics have condemned the ad campaign as demeaning to potential recruits.

Last year, Zelensky reduced the minimum conscription age from 27 to 25, but refrained from further adjustments, citing concerns over the economic and demographic impact. Western supporters have urged Kiev to enlist younger men, saying the aging Ukrainian army is struggling to fight effectively.’

NO WAR BUT CLASS WAR










More poverty or concerted action?

 

A politician once remarked that a week is a long time in politics. Five years is more than long enough for the majority working class to understand and fulfil their historical role and replace capitalism with socialism.

How much poorer do we all have to become, both financially and in quality of life, before we all take decisive action and remove the root cause?

The Metro reports that ‘An average family in Britain could be £1,400-a-year poorer by 2030, according to new analysis.

Frozen tax thresholds, rising mortgage and rent costs, and falling real earnings are all predicted to leave people worse off in the next five years.

The hardest blows will fall on the poorest third, who will bear the impact at twice the rate of middle and high earners, according to the analysis by thinktank The Joseph Rowntree Foundation (JRF).’

https://metro.co.uk/2025/03/23/uk-families-1-400-a-year-poorer-2030-22774425

The Joseph Rowntree Foundation report can be read here.

https://www.jrf.org.uk/cost-of-living/starmers-missed-milestone-the-outlook-for-living-standards-at-the-spring-statement


Overseas non-development

 ‘Why are western governments suddenly slashing overseas aid budgets? Partly because it plays well with right-wing voters, who are told it’s all spent on things like transgender mouse research. Partly, in Europe, because states are scrambling to find money for armaments now that Trump seems to be pulling the plug on NATO.

It’s an open secret in aid circles that overseas development aid can very often result in ‘an inverse correlation between aid and per capita growth‘, ie, the more aid a country gets, the poorer the people become.

So much for capitalism’s ‘noble’ aspiration to abolish poverty. Most aid is not for that anyway, but for self-serving reasons. Abolish capitalism however, and there’d be no poverty.’



https://www.worldsocialism.org/spgb/

Socialist Sonnet No. 186

Not Peace

 

There are ceasefires and rumours of ceasefires:

Behind the scenes diplomacy takes place,

With everyone desperate to save face,

Even as another deadline expires.

Arms industry profits continue to soar,

While the attrition rate’s unforgiving,

As also the rising cost of living

For the many dispossessed, who’re still poor.

And it’s the self-same poor’s sons and daughters

Who’ll make the munitions and build the tanks,

As well as being recruited to the ranks,

Then dispatched to the various slaughters.

Meanwhile, grandiose leaders strut around

On what they claim as their moral high ground.

 

D. A.