Tariffmania and the Escalating Trade War
It bears repeating that all of these tariff hikes on our neighbors, Europe, and other trading partners are unnecessary and destructive.
The president is shocked that other states fight back against his pointless trade wars:
President Trump threatened to escalate a trade war with the European Union after the bloc announced 50 percent tariffs on U.S. whiskey and several other American products to kick in on April 1, in retaliation to a batch of U.S. tariffs that took effect this week.
“If this tariff is not removed immediately, the U.S. will shortly place a 200 percent tariff on all wines, Champagnes, and alcoholic products coming out of France and other E.U. represented countries,” Mr. Trump wrote on social media on Thursday.
Mr. Trump’s jab came a day after E.U. leaders announced that they would respond to the United States imposing 25 percent tariffs on steel, aluminum and related products.
Trump likes starting economic wars, but he always seems surprised when the other side returns fire. He provokes resistance by attacking other countries’ economies for no reason, and then he is outraged that they would dare do anything to stand up to his aggression. His only answer is to threaten more coercion. That is likely to lead to repeated rounds of new tariff hikes and further retaliatory measures until all sides have been driven into recession.
It bears repeating that all of these tariff hikes on our neighbors, Europe, and other trading partners are unnecessary and destructive.