In any case, we will be moving into a future with higher prices, less product choice, and much weaker foreign alliances. The tanking of the stock market, and other possible asset price repercussions, may tip America into recession and increase joblessness.
This is perhaps the worst economic own goal I have seen in my lifetime. I cannot think of any credentialed economist colleague—Democrat, Republican, or independent—who would endorse it. And I haven’t even mentioned the risk that some foreign nations will retaliate against American exporters, damaging our economy all the more.
You might think there is something to be said for a reciprocal approach to tariffs. Usually it consists of cutting off your nose to spite your face, but if it can sometimes work it requires a president (and Congress) who is predictable and trustworthy.
That is not how foreign nations view the current administration.
If you are wondering about the trade treatment of Canada and Mexico, that remains cloaked in mystery. The threatened 25 percent rate on those two nations, from earlier in Trump’s second term, violates the NAFTA redo that was negotiated by Trump himself. Why trust in reciprocity here?
There is much more at the full link. And yes we are getting government by AI (kudos to Rohit!), but someone didn’t write the proper prompt…
The post Yours truly on the Trump tariffs at The Free Press appeared first on Marginal REVOLUTION.
