President Trump conceded Sunday that there may be “some pain” from his sweeping tariffs on Mexico and Canada, but they will eventually lead to a new “GOLDEN AGE.” Nice of him to promise a glorious future because the pain is already unfolding. …He also included a blast at these columns for leading the “Tariff Lobby” after our editorial called his 25% across-the-board tariffs on our friends and neighbors “the dumbest trade war in history.” …But bad policy has damaging consequences, whether or not Mr. Trump chooses to admit it. Tariffs are taxes, and when you tax something you get less of it. …The hammer blow to Mexico and Canada shows that no country or industry is safe. …This will cause friends and foes to recalibrate their dependence on America’s market. How this helps the US isn’t apparent, so, yes, “dumbest trade war” sounds right, if it isn’t an understatement. [A Wall Street Journal subscription is required to read the full story]
Related Economic Coverage in:
- RBC Economics: A US-Canada trade shock now in play: first economic takeaways
- The Economist: The three victims of Trump’s trade ware use different playbooks
- PBS News: The potential economic effects of Trump’s trade war in 9 charts
- The Economic Times: $1.4 Trillion: The true cost of Trump’s tariffs for Americans