Trump - Tariffs

The Cost of Tariff Chaos

Today’s tariffs will be bad enough on their own, but had they been passed as a legislative package you could at least rest easy knowing the matter was settled for the time being. Instead, they’ll remain continually subject to change by the President while setting off a chain of retaliation and renegotiation that will keep global trade policy in flux for weeks or months. Any eventual resolution will also stand on shaky ground—Trump has repeatedly shown his willingness to violate formal free trade agreements, including those he has personally signed, so businesses and foreign countries will never 100% trust that his trade war ambitions are complete. The pervasive uncertainty that has undermined the economy over the last few months will increase before it decreases.