Despite what seems like the entire world going full 'chicken little', President Trump has doubled- and now tripled-down on his efforts to put America first.
Having earlier doubled-down with his comments on "trade wars being good and easy to win"
When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!— Donald J. Trump (@realDonaldTrump) March 2, 2018
Which followed condemnation from most countries - including Canada, China and much of Europe, and also eliciting outraged howls from economists and pundits, who argue that the tariffs will make American goods less competitive, and will dethrone the US from global trade flows as shown schematically in the chart below.
And now Trump has tripled-down, advancing another leg to his trade-war plan - Reciprocal Taxes...
When a country Taxes our products coming in at, say, 50%, and we Tax the same product coming into our country at ZERO, not fair or smart. We will soon be starting RECIPROCAL TAXES so that we will charge the same thing as they charge us. $800 Billion Trade Deficit-have no choice!— Donald J. Trump (@realDonaldTrump) March 2, 2018
Perhaps WSJ is correct that this is "the biggest policy blunder of his presidency"? But for now, Trump appears all-in - or is this just 'the art of the deal'?