Trump’s unusual tariff strategy puts America’s allies in a near-impossible situation

3 comments

1. SS

   Trump has made it clear that his favorite method to gain leverage over opponent countries on the other side of a negotiating table is to raise tariffs. It doesn’t matter whether the offense is trade-related or not. See how Canada just got 10% more tariffs just for running an anti-tariff ad.

   This puts all the countries on the other side of the negotiating table in a near-impossible situation.

   1. First, they must negotiate trade deals by coming to Washington with a transactional mindset: “What can we offer up?”

   2. Second, they must, at the last minute, be prepared for the US president to want more — so they better have something else up their sleeve they can give as an offering.

   3. And there’s a third wrinkle: Never mind reciprocal tariffs — the United States is in the business of retaliatory tariffs for seemingly unrelated issues. It means no country can know what decision, policy or indiscretion will offend Trump, who may retaliate at virtually any time with further tariffs.

   4. It’s not gonna end with a deal. Trump’s love of tariffs will ensure they remain at the heart of US economic policy. Even after having negotiated a trade deal with other countries, he will reserve the right unilaterally to change his mind, threaten and then launch a fresh tariff whenever he feels like it.

2. The only way of winning at this game is not to play at all.
   You don’t negotiate with a hurricane, you make sure your preparations are so good that it’ll not affect you.

3. Tough on allies, impotent on China! MAGA!!

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