In a furious editorial, The Economist dismantles President Trump’s sweeping tariffs, branding them as “the most profound, harmful and unnecessary economic error in the modern era.” Following Trump’s proclamation in the White House Rose Garden of tariffs, including a staggering 25% on foreign-made vehicles, scrutiny arose over the dubious calculations and choices of countries affected.
The publication argues that Trump’s historical perspective is profoundly misguided, reminiscing about a high-tariff era that actually hampered economic growth. Contrary to Trump’s bizarre assertion that lifting tariffs led to the Great Depression, historical scholarship shows that tariffs exacerbated the downturn, while subsequent trade negotiations helped enhance prosperity.
The article dismisses Trump’s economic logic as “flat-out nonsense,” pointing out that his belief in tariffs closing the trade deficit overlooks how Americans save less than the nation invests. The assertion that every trade relationship should be balanced is deemed ludicrous, akin to Texas demanding balanced trade with each other U.S. state.
Initial reactions to these tariffs have been fraught with discontent, as the stock market suffered a significant drop and concerns have arisen even among Trump’s colleagues. The broader implications of these tariffs may be felt deeply across the economic landscape.
The Economist published a critical editorial on Trump’s new tariffs, calling them a major economic error. Trump’s assertions, particularly regarding historical tariff effects, are described as misguided. The claim that tariffs can improve the trade deficit is deemed nonsensical. Stock market reactions and concerns from Trump’s own party indicate broader discontent with the tariff measures.
In summary, The Economist criticizes Trump’s proposed tariffs as misguided and detrimental, asserting they represent a grave economic error. The commentary highlights Trump’s flawed historical narrative and economic reasoning, emphasising that tariffs have historically hampered growth rather than aided it. With initial negative market reactions and concern from political allies, the future impact of these tariffs remains uncertain but likely severe.
Original Source: www.mediaite.com
