Trump's tariff war draws fire from economists and media
"The dumbest trade war in history" is how the editorial board of "The Wall Street Journal" describes Donald Trump's decision to impose tariffs on Mexico, Canada, and China in its article. "WSJ" writes bluntly: the justification for this move, given by the US president, "makes no sense." Experts and other media are also critical of the new trade war.
The editorial board of The Wall Street Journal manages one of the world's largest business media and ensures journalistic standards. The board rarely officially expresses opinions on current topics, but this time, it decided to speak out.
"The Wall Street Journal" harsh on Trump
The Wall Street Journal editorial board titled their article on Trump's imposition of tariffs on Mexico, Canada, and China "The dumbest trade war in history." As they point out, Mexico and Canada—the US neighbors—will face rates of 25%, while China, "the real opponent," will see only 10%.
"Trump's justification for this economic attack on neighbors doesn't make any sense. White House Press Secretary Karoline Leavitt says these countries 'allowed drugs to flow into America.' But "drugs have flowed into the US for decades and will continue to do so as long as Americans keep using them. Neither country can stop it," writes "WSJ."
The journal further indicates that drugs may be just an excuse because "Trump has made it clear that he likes tariffs for tariffs' sake". "President Donald Trump is on the verge of hitting America's three largest economic partners, which is a much more aggressive use of his favorite tool than anything he did in his first term," emphasizes "WSJ".
America self-sufficient? "We don't want to live in such a world"
The editorial board notes that Donald Trump sometimes appears to believe that the U.S. can function without imports, operating as a completely self-sufficient economy. The editors of The Wall Street Journal point out that this concept, known as autarky, does not reflect the reality of the modern world or the kind of economic system most nations seek, something Trump may soon realize.
They point out that the American automotive industry relies on imports: In 2024, 13% of parts were imported from Canada, while 42% were from Mexico. During its production, a single vehicle effectively crosses borders several times. "And everyone benefits from this," adds the editorial board.
The article also stresses that such actions should not take place while the trade agreement between the three countries, negotiated by Trump during his first term, remains in effect. The Wall Street Journal notes that the U.S.'s willingness to disregard its own treaty commitments, even with allies, is unlikely to encourage other nations to engage in future cooperation.
The editorial board suggested that Trump might claim victory and step back if he secures favorable negotiations. However, if the North American trade war continues, it will be regarded as one of the most misguided in history.
Experts: Suicide, high-stakes gamble
CNN quotes experts who also view Trump's decision as highly risky. Mary Lovely, a Peterson Institute for International Economics researcher, describes it as potentially the most self-destructive move yet. She describes tariffs as a high-stakes gamble that could lead to an economic slowdown and rising inflation.
CNN notes that the current tariffs will hit goods worth 1.4 trillion dollars, three times the coverage of tariffs from Trump's first term (about 380 billion dollars).
Lovely is convinced that tariffs will increase consumer prices, especially for food and building materials. However, this will not occur abruptly but gradually.
Christine McDaniel, a former trade official in the George W. Bush administration and now a researcher at George Mason University's Mercatus Center, notes that Trump's decision will weaken North America's economy. "Why would you want to burn your own house down?" she asks rhetorically, as quoted by CNN. RSM's Chief Economist, Joe Brusuelas, summarizes the situation briefly: "The administration is playing with fire."
Donald Trump imposes tariffs on Mexico, Canada, and China
Let us recall that on Saturday, Donald Trump announced in his post on X that he had already officially imposed 25% tariffs on products from Mexico and Canada. This second country will also be subject to 10% tariffs on energy resources. At the same time, the USA is also imposing 10% tariffs on products from China. As Trump explained, he did this due to the threat of illegal immigration and the influx of drugs, including fentanyl, to the United States. As he argued, all three countries are not making efforts to curb this process.
It is worth noting that economists say the moves against China could have significant consequences for the USA. "If the US imposed an additional 10 percent tariff on China and China responded in kind, US GDP would be $55 billion less over the four years of the second Trump administration, and $128 billion less in China," the American Peterson Institute for International Economics estimated in a report quoted by CNBC.
