While Donald Trump's trade policy makes no sense economically, it becomes more coherent when viewed through a geopolitical lens: the purpose is not to benefit Americans but to harm others. The question is whether the existing multilateral trade system can adapt without first unraveling entirely.
NEW HAVEN – The chaotic rollout of US import tariffs by President Donald Trump’s administration – targeting both allies and adversaries – defies easy explanation. As I argued in a previous commentary, the United States is now pursuing multiple, often contradictory objectives. Given the structural trends driving deindustrialization in advanced economies, the prospect of reshoring manufacturing seems remote. Instead, the more plausible goal is fiscal. The current US administration claims that tariffs can generate revenue so that foreign countries are effectively subsidizing tax cuts for US residents.
NEW HAVEN – The chaotic rollout of US import tariffs by President Donald Trump’s administration – targeting both allies and adversaries – defies easy explanation. As I argued in a previous commentary, the United States is now pursuing multiple, often contradictory objectives. Given the structural trends driving deindustrialization in advanced economies, the prospect of reshoring manufacturing seems remote. Instead, the more plausible goal is fiscal. The current US administration claims that tariffs can generate revenue so that foreign countries are effectively subsidizing tax cuts for US residents.