Trump Blinks on North American Tariffs

From the Wall Street Journal editorial board:

“None of this means the tariffs are some genius power play, as the Trump media chorus is boasting. The 25% border tax could return in a month if Mr. Trump is in the wrong mood, or if he doesn’t like something the foreign leaders have said or done. It also isn’t clear what Mr. Trump really wants his tariffs to achieve. Are they about reducing the flow of fentanyl, or is his real goal to rewrite the North American trade deal he signed in his first term? If it’s the latter, there’s more political volatility ahead.”

“Mr. Trump’s weekend tariff broadside against a pair of neighbors has opened a new era of economic policy uncertainty that won’t calm down until the President does. As we warned many times before Election Day, this is the biggest economic risk of Donald Trump’s second term.”

Paul Krugman: “By making the tariff threat in the first place, Trump made it clear that America is no longer a nation that honors its agreements. By caving at the first sign of opposition, he also made himself look weak. China must be very pleased at how all this has played out.”

CNN: “In the face of a trade war with America’s neighbors, Trump blinked.”