Three words describe America's new tariffs: Stupid, stupid, stupid

US assumptions are all wrong and could actually drive countries into a closer embrace of China

- VIVEK KAUL

On the third day of the Boxing Day Test match between India and Australia in Melbourne on 28 December, when India were precariously placed at 191 runs for 5 wickets, Rishabh Pant at the crease attempted an audacious ramp shot off Scott Boland and got out. Sunil Gavaskar, in the commentary box, reacted with three words: "Stupid, stupid, stupid."

Indeed, like that cricket shot, 'stupid, stupid, stupid' is what best describes US President Donald Trump's tariff economics. It raises several points.

First, many of Trump's Make America Great Again (MAGA) supporters, possibly even him, seem to believe that tariffs will be paid by the countries exporting goods to the US. The fact is that tariffs are paid by importers, who then pass on the cost to end consumers—in this case, the American people.

Second, then why do this? Are tariffs a negotiating tactic? That may have been true for Trump's first term, but it is a difficult argument to make now. Some countries might buckle and cut their tariffs, but many have counter-tariffs planned. Also, like Trump wants to appear strong to his supporters, politicians elsewhere too may not want to be seen as weak against his tariffs.