Trump's Brutal Tariffs Far Outstrip Any He Has Imposed Before

Trump's new duties ought to erase any doubts about his resolve to take a hard line on trade

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Less than two weeks into his new administration, Donald Trump has placed large tariffs on America's three biggest trading partners—raising the spectre of a global trade war. With executive orders signed on February 1st, he initiated tariffs of 25% on imports from both Canada and Mexico, and added levies of 10% to imports from China. Although Mr. Trump had vowed to do just this, his actions will still represent a shock to the global economy. They will drive up prices, weigh on growth and sow uncertainty for businesses. Moreover, they are likely to be just the first salvo for Mr. Trump, who is itching to implement tariffs that are both more aggressive and more global.

Mr. Trump's announcement of the new duties ought to erase any doubts about his resolve to take a hard line on trade, heedless of warnings from businesses, diplomats, and economists about the potential fallout. In a fact sheet explaining the orders, the White House said access to the American market is a privilege, and that tariffs are a "proven source of leverage for protecting the national interest." In recent days there had been reports that he might delay the tariffs or opt for a more gradual approach. Canadian and Mexican officials shuttled back and forth to Washington, making the case that tariffs in North America, one of the world's most tightly integrated trading zones, would be utterly counterproductive.

In the end, Mr. Trump paid them no heed, opting for harsh, wide-ranging levies, with only a partial carve-out for oil and gas from Canada, which will for now be limited to a 10% tariff rate. The 10% tariffs on China were milder than the 60% level that Mr. Trump had threatened on the campaign trail, but they come on top of tariffs of 25% that already cover much of America's trade with China, and they may well serve as just the opening barrage in a renewed trade clash between the two giants.