Trump’s tactics have a political edge and may destabilize global trade
The Trump administration is doing its best to convince the world that its decision to slap tariffs on a host of foreign-made goods is no big deal. The dispute with Canada is “a family quarrel,” according to top Trump economic adviser Larry Kudlow. As for the growing rift with Europe over Trump’s policies on trade and other issues, Secretary of Commerce Wilbur Ross says they’re “blips on the radar screen” and “everybody will get over this in due course.”
America’s closest allies give a very different impression. After Trump imposed steel and aluminum tariffs on the European Union, Canada, and Mexico on May 31, Jean-Claude Juncker, president of the European Commission, called the move “protectionism, pure and simple.” Canadian Prime Minister Justin Trudeau deemed the tariffs “an affront to the long-standing security partnership between Canada and the United States,” while French President Emmanuel Macron was more blunt, warning that Trump’s action was “illegal” and “creating economic nationalism.” He ominously added: “And nationalism is war.”
Trump has become the bully of the global economy, using the immense leverage of the U.S. market and the close to $3 trillion of foreign goods and services Americans buy every year to bludgeon friend and foe alike into rewriting trade pacts and offering favorable concessions. For the most part, the rest of the world has stood firm, either granting minor compromises or simply fighting back. The EU, Canada, and Mexico have all retaliated against Trump’s metal tariffs by slapping duties on U.S. products ranging from cheese to motorcycles.
This story is from the June 11, 2018 edition of Bloomberg Businessweek.
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This story is from the June 11, 2018 edition of Bloomberg Businessweek.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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