Trump’s Trade War Begins
Donald Trump’s trade war is on. The global markets are rattled. John Cassidy on how, after running on a campaign of lowering prices, the President is now making them go up—and on what this might mean for the economy. Plus:
Source photograph by Carlos Barria / Reuters
The Truth About Donald Trump’s “Liberation Day”
The President’s one-man trade war was already hurting the economy. His expansive new tariffs will make things worse.
In recent weeks, the White House had seemed to be downplaying the potential extent of the President’s promised tariffs, with Trump himself noting that the final figures might be “somewhat conservative.” But yesterday he went big instead, announcing sweeping new levies on virtually all imported goods—with especially steep tariffs on large trading partners such as China and the European Union, and on developing countries in Southeast Asia. These tariffs are likely to increase prices for consumers on a wide variety of commodities, including clothes, alcohol, electronics, and cars built inside and outside of the country.
Our economic columnist John Cassidy breaks down the latest developments, exploring the effects that tariffs have had in the past, why yesterday’s announcement has upended global markets, and how the Administration’s rollout has left some analysts grasping for sense amid the apparent chaos. In one theory, Cassidy writes, “Trump’s tariffs would function primarily as bargaining chips, which he could use to browbeat other countries into accepting a devaluation of the dollar, which would make U.S. exports more competitive.” But such a plan runs counter to the President’s own statements promising tariffs as a source of revenue; they simply can’t be a temporary threat and a long-term strategy at the same time. The very idea, as with some of the Administration’s basic math, appears to defy logic.
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P.S. A new episode of “The Pitt,” the buzzy new medical drama, airs tonight. Set in a busy and overcrowded emergency room in Pittsburgh, the show, Inkoo Kang argues, is actually a comfort watch. 🩺