The madness continues in American trade policy. Trump’s latest tariffs have no coherent economic rationale and are, first and foremost, an attack on American consumers.
These tariffs are a massive tax increase which will harm American consumers and businesses. Ford, which manufactures more cars in America than anyone else, expects to pay $2bn in tariffs this year.
But this is not really about economics; it is about punishing countries which displease the president, and rewarding those who toe the line. Using executive power in this way is an affront to liberal democracy and the rule of law.
The British government deserves some credit for its handling of the situation. But that doesn’t change the fact that our trade with the United States is far less free than it was before President Trump was re-elected.
Free trade remains an essential component of economic efficiency, international competitiveness, and rising living standards. Government-imposed trade barriers only ever enrich special interests; the rest of us bear the cost.
