Trump s Tariffs Are Unique in History – WSJ

Watching from the sidelines at Dartmouth College is Douglas Irwin, an economics professor. He knows more about U.S. trade policy than anyone alive, having written Clashing Over Commerce (2017), the first definitive economic history of trade since Frank Taussig s A Tariff History of the United States (1931). In a Zoom interview, I ask what governments and businesses around the globe should make of Mr. Trump s mercurial approach to trade and tariffs.

It is incredible, he says, but he doesn t seem disbelieving. Well, Trump twice said that the 25% tariffs on Canada and Mexico would take effect and twice pulled them back, so perhaps we should have expected this. I think his heart is with this reciprocal tariff plan, and to walk that back because of pressure from the markets must be a big disappointment.

But Mr. Irwin, 62, like most mainstream economists and business leaders, is unhappy. To whipsaw the markets like this amounts to grossly irresponsible economic management. On April 4 Mr. Trump asserted on social media that MY POLICIES WILL NEVER CHANGE. And yet, after pausing the tariffs, he said, You have to be flexible,   Mr. Irwin notes.

Any relief that foreign governments might have over the tariff pause will be accompanied by utter dismay over the shambolic nature of U.S. policymaking. He calls Mr. Trump s actions cavalier and says there is no strategy. And this uncertainty is a tax on the economy, undermining consumer confidence and freezing up investment spending. It could bring a recession.

via www.wsj.com

I share enthusiasm for the apparent demise of woke insanity and the support (so far) of free speech, as well as a more common sense energy policy, and efforts of DOGE — but this tariff stuff . . . it looks like Trump is setting off a big bomb and just hoping the pieces fall into place. I don’t think the world works that way.