Trump displayed his lack of knowledge about trade by proclaiming a trade war easy to win, as he has tanked the stock market, and the US economy prepares to feel the pain.
Trump tweeted:
When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!
— Donald J. Trump (@realDonaldTrump) March 2, 2018
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We must protect our country and our workers. Our steel industry is in bad shape. IF YOU DON’T HAVE STEEL, YOU DON’T HAVE A COUNTRY!
— Donald J. Trump (@realDonaldTrump) March 2, 2018
When a country Taxes our products coming in at, say, 50%, and we Tax the same product coming into our country at ZERO, not fair or smart. We will soon be starting RECIPROCAL TAXES so that we will charge the same thing as they charge us. $800 Billion Trade Deficit-have no choice!
— Donald J. Trump (@realDonaldTrump) March 2, 2018
What is a trade war?
MSNBC’s Stephanie Ruhle explained how Trump’s trade war hurts the economy:
MSNBC's Stephanie Ruhle explains the impact of Trump's trade war on the economy. (Hint: It's not good.) https://t.co/yEXgQP3wjj #TrumpTanksTheMarket #TradeWar pic.twitter.com/2SkhWS11Kd
— Sarah Reese Jones (@PoliticusSarah) March 2, 2018
Ruhle said, “So does this help America? That’s debatable. It helps some American companies. Specifically, steel and aluminum manufacturers. But it hurts American companies that use steel and aluminum. Relying on cheaper imported metal to make everything from cars to beer cans. It hurts American consumers that may have to pay more for those items if the cost of raw materials goes up. It hurts those countries that send their steel and aluminum to the United States. Now, tariffs might make more sense if they specifically targeted a country with unfair trade policies like China, which is what President Trump wants to do. But here’s the thing, that’s not happening. These tariffs hit all countries. In fact, the top exporter of steel to the United States is our partner, our neighbor, our ally, Canada. The next three are Brazil, South Korea, and Mexico. All U.S. Allies. Russia is number 5. But China’s not even in the top ten. The fear now is that some of these countries may retaliate by imposing tariffs on American products being shipped overseas. And this is what we mean by trade war.”
Trade wars are terrible ideas
Trade wars are always bad ideas. A trade war always raises prices and harms consumers. Trade wars also kill jobs, because if the price of materials goes up, so do employer costs. When employer costs get too high, workers get laid off. Trump is destroying people’s retirement accounts, raising prices, and risking jobs all with one incredibly stupid move. The tariff on aluminum and steel isn’t a trade policy. It is an irrational tantrum that will reverberate throughout the US economy, and harm the very people who are living paycheck to paycheck that Trump claims to be protecting.
Jason is the managing editor. He is also a White House Press Pool and a Congressional correspondent for PoliticusUSA. Jason has a Bachelor’s Degree in Political Science. His graduate work focused on public policy, with a specialization in social reform movements.
Awards and Professional Memberships
Member of the Society of Professional Journalists and The American Political Science Association
