If Trump carries out what he has described on the campaign trail, his potential second term would be radically different. But these would represent incremental changes, whereas a re-elected Trump could fundamentally remake the world trading system. Economists think the broader tariffs Trump has proposed would similarly raise prices and, on net, hurt growth. Indeed, one goal of the tariffs Trump imposed on China, and Biden maintained, was to diversify away from China as a supplier. Everyone raised their tariffs.”In Trump’s first term, China, the European Union, Canada and Mexico all did retaliate; Japan and South Korea didn’t.

Source: Wall Street Journal October 20, 2024 10:36 UTC