How Trump Brought His Party To The Trade War

Trump’s tactics have a political edge and may destabilise global trade

- Michael Schuman

The Trump administration is doing its best to convince the world that its decision to slap tariffs on a host of foreign-made goods is no big deal. The dispute with Canada is “a family quarrel,” according to top Trump economic adviser Larry Kudlow. As for the growing rift with Europe over Trump’s policies on trade and other issues, Secretary of Commerce Wilbur Ross says they’re “blips on the radar screen” and “everybody will get over this in due course.”

America’s closest allies give a very different impression. After Trump imposed steel and aluminum tariffs on the European Union, Canada, and Mexico on May 31, Jean-Claude Juncker, president of the European Commission, called the move “protectionism, pure and simple.” Canadian Prime Minister Justin Trudeau deemed the tariffs “an affront to the long-standing security partnership between Canada and the United States,” while French President Emmanuel Macron was more blunt, warning that Trump’s action was “illegal” and “creating economic nationalism.” He ominously added: “And nationalism is war.”

Trump has become the bully of the global economy, using the immense leverage of the U.S. market and the close to $3 trillion of foreign goods and services Americans buy every year to bludgeon friend and foe alike into rewriting trade pacts and offering favourable concessions. The rest of the world has main stood firm, either granting minor compromises or simply fighting back. The EU, Canada, and Mexico have all retaliated against Trump’s metal tariffs by slapping duties on U.S. products ranging from cheese to motorcycles.