Donald Trump has finally delivered on his long-delayed promise of trade protectionism, and in the worst possible way
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By promising to impose tariffs on metals imports (25% on steel, 10% on aluminum) on “national security” grounds, he addresses a problem that doesn’t exist, and creates a host of new ones.
As everyone except the president seems to know, the US is predominantly a services and high-tech economy
The best-case scenario is that it is, and having satisfied his urge Trump will move on to other matters
The most likely case, however is that subsequent trade actions will more tightly target China, which accounts for half of the US non-oil trade deficit
Now countries will be inclined to wonder whether it is really China or the US that poses the greater threat to the world trading system...
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