‘What does Trump want?’ is a question much of the world has struggled to answer for weeks since US President Donald Trump imposed sweeping tariffs on trade partners, as well as no-commercial trade geographies inhabited only by penguins and seagulls, and then put them most on pause. He raised tariffs on China, then raised them…
Economists are right to denigrate Trump’s trade policies. Other countries’ unfair trade practices are not the main reason for the US trade deficit and targeting bilateral trade imbalances is downright silly. While the trade deficit has contributed to the decline of US manufacturing, it is hardly the most important factor. Besides, it enables American consumers…
Some of Donald Trump’s reasons for imposing tariffs on countries are understandable, even if their fitness for the purpose is debatable. Demanding that Mexico impose tighter border controls, Europe raise defence expenditure and China prevent fentanyl smuggling or else suffer economic punishment is coercive diplomacy. A good threat comprises a promise of punishment if the…
