Trump's threat to slap tariffs on Canada and Mexico didn't really stick.  Pushing back against the idea of trade war, Trump himself stepped back from the brink.  If you look at the whole situation, the administration quickly backtracked from its tough talk.

Mexico and Canada, to avoid tariffs, they made promises to increase border security with a vague promise to strengthen it.  Trump, in turn, delayed the tariffs by a month. He also delayed a tariff on Chinese exports, which are below $800. He did announce some tariffs on Chinese goods, but at a lower rate than promised. .  The whole situation shows that the leaders did not want to face the consequences of the economic war.  Trump claims tariffs would bring in money to the US, but the reality is that the US firms would pay for the tariffs.

The US firms that import goods would face a higher cost.  The tariffs would also result in higher prices for the US consumers.  The farmers and businesses would also face retaliation from other countries.  Trump's plan for tariffs is a massive shift in how the US raises money.  This would mean taxing other countries more and Americans less. But if the tariffs would really increase the tax burden on the average American, Trump could lose the support of the voters.  He said that the tariffs could bring in trillions of dollars to the US, but many economists say the tariffs would increase prices and damage the economy.

In a nutshell, Trump's tariffs are a negotiations tactic.  He is using the threat of tariffs to get what he wants.  But if he goes ahead with the tariffs, they could backfire.  In the end, the voters are who would face the higher prices.  Trump promised to lower the cost of living, but tariffs could do the opposite.  The voters want lower prices, not higher ones.  Trump's success is based on controlling the narrative.  But the reality on the ground is different.  The voters want relief from the economic burden, not more of it.  The threat of tariffs is a tactic, but it could also backfire.  The voters would not be happy if the tariffs lead to higher prices and a weaker economy.  Trump's success is based on controlling the narrative, but the reality on the ground is different.  The voters want relief from the economic burden, not more of it.  So, Trump is walking a fine line.  He can't afford to raise prices, but he also can't afford to back down from his tough talk.

How Did Trump's Trade War Stumble Fail to Start?

Actions