Trump's Tariff Victory Is Not What It Seems

Mr. Trump's belligerence on trade has succeeded in twisting the arms of US allies rather than those of its biggest rival, to whom he has made multiple concessions while receiving little in return

- ESWAR PRASAD

It looks as though President Trump is winning the trade wars. Deals with the European Union, Japan, Britain and many other trading partners, which went into effect on Thursday, seem heavily one-sided. The United States gets to impose tariffs on imports from other countries and they agree to drop their tariffs on some US imports to zero, buy more US energy and other products and commit to increasing their investments in the United States.

In the end, the victory will be Pyrrhic, especially for US households and businesses and for America itself, given the expected damage to its relationships with other countries and its standing in the world.

There is little clarity about the meaning of countries' agreements to invest more in the United States. Moreover, few of the deals have been signed. And Mr. Trump's unilateral imposition of tariffs, usurping congressional power, faces legal challenges.

Hopes that the tariffs will help create jobs and bring down the trade deficit might also be hurt by other Trump policies. Many businesses, such as American automakers, may be left worse off relative to their foreign competition because they face high tariffs on imported steel and aluminum, as well as engines and other components. And since it is far from clear that the trade deals negotiated so far will stick, the uncertainty will crimp business investment. None of this is good for job growth.