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No such restrictions apply to Canadian lorries.Mexico had the right to impose bigger tariff rises.
The bigger tariff figure gets, the more it will be felt by people on both sides of the Pacific.
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Much bigger tariffs may be coming, too, if China elects to target even larger and more politically sensitive U.S. exports to China, such as soybeans.
Many countries, including India, Egypt and Nigeria have been unilaterally slashing tariffs, even as they refuse to offer big tariff cuts in the Doha round.
But they also know that many of their customers cannot afford big tariff increases, so the IMF's concerns may be overblown.
Certain towns could feel the pain as the industries there are affected the most, but so far, Trump's instincts have been to make a big tariff announcement and then scale it back dramatically.
Interestingly, the big tariff cuts in GATT rounds had already happened; what we're looking at here is trade liberalization in developing countries plus containerization, and the emergence of massive vertical specialization (iWhatevers being made in many stages in different countries).
In Nairobi earlier this month, while his wife and kids partied with film stars in Hollywood, Punke stayed up late into the night negotiating agricultural subsidies and completing a deal on the biggest tariff cut that the WTO has negotiated in 18 years.
Speaking to Fox & Friends on Friday, he said: "We're getting on great with China, probably until this morning because we just did a big tariff on China, but that's OK because I have a wonderful relationship with President Xi.
The tax is a relic of a mostly forgotten trade war from the early 1960s, when Europe tried to stop a flood of imported U.S. chicken and, in retaliation, President Lyndon B. Johnson imposed the big tariff aimed at European automakers such as Volkswagen.
A small tariff cut for a big market could be more valuable than a big tariff cut for a small market.
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