Trumps Tariffs Against China, Canada and Mexico

President Trump’s tariffs on Canada, Mexico and China took effect at midnight.By now, you’ve probably heard about the risks: higher prices, slower economic growth, a trade war.

Trump acknowledges the potential for economic pain.Yet he signed off on the levies anyway — 25 percent for Canada and Mexico, another 10 percent for China.Why? He believes he can’t advance his “America First” agenda without rebalancing trade with other countries.

This, he says, will make them do things that are in the United States’ interest.With these latest tariffs, he has demanded that Canada, Mexico and China do more to stop drug trafficking.But the tariffs could also harm American interests.

If Canada and Mexico decide that America is no longer a reliable partner — one that keeps its word and prizes stability over chaos — they may seek other customers for their goods.They could even turn to U.S.

adversaries like China.America would end up more isolated on the world stage.This issue isn’t just about trade; it’s about America’s alliances in general.

To bend other countries to his will, Trump has suspended military aid to Ukraine, publicly hectored world leaders, threatened to withdraw U.S.troops from Europe and pulled out of international groups like the World Health Organization.Trump might succeed.

But he also might scare off would-be friends.Today’s newsletter will look at two potential outcomes for Trump’s policy: one in which tariffs and pushy diplomacy accrue advantages for the United States and another in which the nation stands weaker and alone.America first?Trump’s America First approach has produced policy wins.

When the president threatened Canada and Mexico with tariffs last month, both countries made limited concessions to appease him.Canada promised to name a “fentanyl czar.” Mexico said it would move troops to its northern border.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Th...