Trump is rescuing Maine lobstermen from himself, and blaming Obama

“The Maine lobster industry, which has been battered for years as a result of the Trump administration’s trade war with China, got some good news Wednesday. The president unexpectedly announced that the lobster industry will be eligible for bailout funds that had previously only been given to farmers and ranchers.

Trump being Trump, he portrayed this not as what it is — a course correction aimed to belatedly limit the collateral damage of his own policy ideas — but rather as an effort to rescue coastal Maine from the depredations of the Obama administration which he claimed “destroyed the lobster and fishing industry in Maine.””

“Maine fishing actually prospered a great deal during the Obama years. It was a generally rough period for the Maine economy, especially inland, due to both the overall weakness in the American labor market and a specific structural decline in demand for paper. But the lobster industry did very well thanks to a combination of what seems to be an increase in lobster catches induced by climate change and strong demand from Asia.”

“The origins of this week’s lobster policy announcement lie in taxes that Trump initially imposed years ago on goods imported from China. Those higher taxes did not generate the policy concessions Trump was looking for, so they led to higher and more wide-ranging taxes on Chinese imports over the years.

China retaliated against these moves by reducing imports of a range of American-made products, largely agricultural, which created a political problem for Trump because rural voters are one of his important constituents. The tariffs also raised consumer prices in the United States by something like $57 billion per year, according to the conservative American Action Forum. But Trump never expressed much concern about the impact on consumer prices, insisting (falsely) that the economic cost of the taxes fell entirely on Chinese producers.”

https://www.vox.com/2020/6/26/21302840/donald-trump-lobster-bailout-obama

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