Who Will Blink First, Don Or Xi?

Trump's trade war with China worsens US economy, while Xi resists pressure, strengthening China's self-reliance and long-term strategy despite escalating tariffs and economic challenges.

- JOHN DOBSON

We should always be aware of the demagogues who are ready to declare a trade war, weakening our economy, our national security and the entire free world, all the while cynically waving the American flag," said President Ronald Reagan almost 40 years ago. Today America has a president who is doing exactly what Reagan warned against. Giving all the appearances of a demagogue, Trump has started a trade war with friends and foe alike, all the while cynically waving the American flag and yelling his well-known MAGA mantra "Make America Great Again". Many economists are worried that Trump is about to "Make America Poor Again".

Even the celebrated conservative economist and Trump supporter, Art Laffer, said in an interview with Axios last month that President Trump's tariffs could cause a significant downturn in the US economy. "I don't know anyone looking at the facts could argue that protectionism doesn't create downturns", he said. "Once you screw around with supply chains, production facilities, all of that, it's very hard to reverse. What you've got here is something that is very time sensitive", he warned before adding "you will find out whether I'm right to be scared or right to be hopeful probably in 90 days - there's not a lot of time".

It was clear during the interview that Laffer, who in 2019 received from Trump the Presidential Medal of Freedom for his contributions to economics, was very uncomfortable in criticizing his friend. Almost as an afterthought he quickly added that "the president is a great negotiator" and is "the single best president of his time". While he was optimistic that Trump would secure trade deals and eventually reduce tariffs, Laffer's clear message was that Trump's behavior could wreak havoc with America's economy, which is reckoned to be on a knife-edge.