Trump Tariffs Threaten to Upend Global Economic Order
The New York Times
The invoking of national security to unravel trade agreements could scramble the international trading system in China’s favor.
President Trump’s move this weekend to slap sweeping tariffs on Canada, Mexico and China is threatening to fracture the global trading system and a world economic order that once revolved around a U.S. economy that prized open investment and free markets.
The speed and scope of the import duties that Mr. Trump unveiled in executive orders on Saturday prompted widespread criticism from many lawmakers, economists and business groups, who assailed the actions as economic malpractice. They warned that the tariffs, which were levied in response to Mr. Trump’s concerns about fentanyl smuggling and illegal immigration, could inflame inflation, cripple American industries and make China an even more powerful global trade hub.
Mr. Trump on Sunday defended the tariffs while acknowledging that there could be some negative consequences.
“WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!),” he wrote on social media.
The executive orders mean that on Tuesday at 12:01 a.m., all goods imported from Canada and Mexico will be subject to a 25 percent tariff, except Canadian energy products, which will face a 10 percent tariff. All Chinese goods will also face a 10 percent tariff.
Canada and Mexico have vowed to retaliate swiftly with tariffs of their own, and China said it would pursue unspecified “countermeasures” to safeguard its interests.
