Donald Trump has fired the first shots in what threatens to become a devastating trade war. The US president’s tariffs on Mexico, Canada and China will deliver an immediate shock to the North American and world economies. They imperil decades of progress towards economic integration that has boosted US and global prosperity. One absurdity is that these measures are entirely unprovoked in trade terms; they are being used as a coercive tool to further Trump’s domestic political agenda and extract concessions from American neighbours that may be beyond their power to give. Another is that the US will be one of the main victims — in the resulting harm to its own economy and its standing in the world.
The returning US president has touted various illusory explanations for his love of tariffs. They will, he says, restore America’s industrial base, replace income tax and pay off US debt. The ostensible motive for his tariffs this weekend is instead to curb the “major threat of illegal aliens and deadly drugs” including fentanyl. Trump’s threat of sanctions had, it is true, already prompted steps from Canada and Mexico to reinforce their borders. But these would no doubt have continued had the president chosen to stay his hand. And there are practical limits to what else they can do — especially Canada, source of only a fraction of the irregular immigration or fentanyl that crosses from Mexico.
The legal pretext for Trump’s move is questionable, too. He made use of the International Emergency Economic Powers Act, an executive authority that enables him to respond to extraordinary economic or security threats. Yet that law has not previously been used to enact tariffs. The courts and Congress ought to block them.