President Trump claimed in a tweet that “trade wars are good, and easy to win.” Unfortunately, the American people are about to experience firsthand how wrong the president is and how painful and hard it really is to “win” a trade war.
It is hard to win any war and even harder to come out ahead. That’s why we try to avoid wars. Veronique recognizes that trade wars are just a way to impoverish two or more nations:
Tariffs imposed by any government are, first and foremost, penalties on those of its own citizens who buy imports (or import-competing domestic goods). Uncle Sam’s tariffs, therefore, are penalties imposed on Americans. That’s what they are, period.
We don’t want to go review the John Roberts Obamacare arguments but we would prefer tax to penalty. Other than that we are in full support of Veronique. She also goes on to explain that the Chinese are likely to be better at abusing their citizens than the US which suggests the difficult of winning a futile war. The Donald has often been right about economics but on tariffs he is dead wrong.