Making Trade Wars Great Again: Now that the Donald has fulfilled his campaign promise to make trade wars great again, The Economist analyzes the impact that these distortions will have on the economy as well as the NAFTA renegotiation efforts. According to the magazine, “The indirect effects of the tariffs are likely to have a bigger impact. Under Mr Trump, American trade policy has become highly uncertain, as he demonstrates to the world that he is willing to inflict harm on his own supporters to get his way. The American market is big, perhaps big enough for a policy of intimidation to work in persuading companies to make things closer to their consumers. But though this might seem to serve the president’s agenda of protecting and repatriating manufacturing jobs, scaring companies away from global supply chains will leave America poorer in the long run.”
Making Trade Wars Great Again (cont’d): The Economist then analyzed the retaliatory tariffs other nations have slapped on the United States. POTUS making the welkin ring with protectionism will only serve to deter investment in America (his aim, according to even many defenders of the tariffs)—and that, ultimately, consumers will lose. Great election year policy, huh?…