Trump's Tariff Gambit: Lots Of Problems
/While I have spent the past couple of weeks writing about conspiracy theories and the Kennedy assassination, the rest of the world has been consumed by the news of President Trump and his big tariff gambit.
After talking at length during the campaign about imposing a new and expansive tariff regime, Trump announced the details of his big move on April 2 — tariffs on everything, from all countries, of at least 10%, ranging up to 50% or more on some countries (e.g., China) and certain products. All of this is to be done by Executive Order, said to be based on a declaration of “emergency” under a collection of pre-existing statutes (the International Emergency Economic Powers Act of 1977; the National Emergencies Act; and the Trade Act of 1974).
The stock markets have reacted with turmoil. Various indices were down 10% or more over the past week, and, after initially gaining, have fallen further today. Liberal media outlets, including the New York Times gleefully foresee impending economic damage. (From today: “Investors overwhelmingly believe that Mr. Trump’s tariffs, and retaliation from U.S. trading partners, will lead to higher prices, slower growth and possibly a global recession.”).
Regular readers here will not be surprised to learn that I am not a fan of what Trump is doing on the tariff front.