The US Will Be the Biggest Loser From Trade ‘Wins’
In due course, new duties will slow down innovation and depress US living standards. And that’s if the tariff wars stop now.
Tariff triumph? Not quite.
Photographer: Andrew Harnik/Getty Images
The White House is trumpeting its new trade deal with the European Union, following a similar agreement with Japan, as a great victory. Both pacts impose tariffs of 15% on most exports to the US, along with other concessions — on the face of it, lifting the threat of open-ended trade war and reaffirming US dominance. Financial markets advanced on the news.
In truth, there’s nothing to celebrate. Both deals are lose-lose for all involved. The best that can be hoped for is that the administration now moves on to other priorities before more damage is done.