Article Summary
Donald Trump’s plan for steep global tariffs has been defended as a mere threat to pressure other countries to lower their own barriers to American goods, aiming for freer trade and more revenue for US companies. However, this approach has significant flaws, as shown by America’s checkered history of such gambits and the economic damage that threats alone can inflict on the American and global economies. Just the threat of a tariff can increase uncertainty for businesses, reducing U.S. investment, output, and hiring. Trade policy uncertainty spiked during Trump’s time in office, and the U.S. courts have been deferential to the executive branch in cases involving “national security.”
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