There’s a method behind Trump’s tariff madness

If you’re confused by President Donald Trump’s tariff plan, you’re not alone.

If you’re confused by President Donald Trump’s tariff plan, you’re not alone. Trump and his economic team have made many contradictory statements about the rationale for tariffs, leaving American multinational businesses unsure how to plan, and foreign countries unclear on how to negotiate. Trump launched massive and punishing import taxes on Canada and Mexico, only to postpone them for a month in exchange for relatively little from America’s neighbors. Across-the-board Chinese tariffs are on, but a repealed exemption on small items caused massive confusion at the US Postal Service and was temporarily put back in place. And more tariffs on steel and aluminum are expected to be announced Monday, before a potentially far more expansive reciprocal tariff plan is set to be announced later this week. That may just be the beginning: Trump has hinted at launching tariffs on the European Union, and he has also promised a broader tariff on every single item that comes into the United States. Tariffs serve an important purpose in the economy. The United States has frequently used tariffs to protect its manufacturing industry, farmers, technology and national security interests. While previous administrations — including Trump’s tariff-heavy first term — tended to use a scalpel as their preferred tariff tool, Trump in his second term is threatening to use a wrecking ball, saying he’ll place tariffs on many goods that the United States doesn’t even produce. Corporate America, outraged by the tariffs, has lobbied hard against them. Mainstream economists largely agree that Trump’s tariff plan will reignite inflation and slow US economic growth. Last month, the Wall Street Journal’s editors, who typically side with the president’s policies, called Trump’s tariff plan “the dumbest trade war in history.” But there’s a method behind Trump’s tariff plan.