Donald Trump’s aggressive trade war threats against America’s closest allies have economists warning of severe economic pain ahead for the very voters who put him back in office.
Just one week into his second term, Trump has threatened massive tariffs against Canada and Mexico while celebrating a tariff-based strong-arm “victory” over Colombia. Economic experts predict these moves could devastate working-class communities across America’s heartland. “Whatever tariff that might be is going to be in addition to whatever President Trump does in the future when he’s thinking about an overall tariff,” National Economic Council Director Kevin Hassett told Fox Business, hinting at escalating trade barriers.
A viral tweet from Dale Thompson captured the growing frustration:
For everyday Americans, particularly in MAGA strongholds, the impact could be severe. With Canada providing 60% of U.S. oil and gas imports, drivers in the Midwest and Rocky Mountain regions face potentially dramatic increases at the pump. The automotive sector, concentrated in Trump-supporting states, could see crushing cost increases.
“The amount of companies that have operations in Mexico and Canada in that industry with components and parts as well, including even airplanes, that’s going to be a huge hit,” warns Chris Desmond, a principal at PwC’s international trade practice. Despite these warnings, Trump appears undeterred, recently declaring “tariff” the “most beautiful word” after “God, love, religion.” He insists the measures will force manufacturing back to American soil.
Mexico and Canada have signaled they would retaliate with countermeasures if Trump follows through, potentially triggering an economically devastating cycle of escalating trade barriers. Mexican President Claudia Sheinbaum has maintained measured responses while preparing potential counter-tariffs, and Canadian ministers have explicitly stated they’re ready to retaliate.
Trump’s threats extend beyond North America. His successful pressure campaign against Colombia through tariff threats has emboldened more aggressive stances toward other nations. He’s even revived talk of acquiring Greenland, creating diplomatic tension with Denmark. PwC also broke down the potential damage: companies importing from Canada could face $106 billion more annually in import taxes, while those importing from Mexico could owe $131 billion more. The transportation sector alone could see import taxes skyrocket from $4 billion to $68 billion yearly.
As Trump pushes for tariffs “much bigger” than 2.5%, economists warn that retaliatory measures from trading partners could amplify the damage to American consumers and businesses, particularly in the manufacturing and agricultural heartland that formed Trump’s base.
Getting to the brass tacks, as a businessman who claims deals are his specialty, Donald Trump’s (or the Heritage Foundation’s) hyper-aggressive pursuit of economically self-destructive tariffs against America’s closest allies suggests either a startling ignorance of basic economics or something fishy (and desperate) beneath the surface, even aside from an institution of violently racist neoconservative fascism. The sheer illogic of threatening Canada and Mexico with measures that would devastate his own voting base—while celebrating a meh “victory” over Colombia’s forced compliance—raises serious questions about whether economic prosperity for anyone is truly the goal. Absolutely no one, not even Trump’s base, believes these countries are any sort of threat to American prosperity.
More troublingly, this strategy actively works against America’s long-term interests. Europe—amid an alt-right emergence that predictably conveys a familiar stalling of the continent as a unified economic force and foretelling its own decline—grapples with significant demographic and workplace challenges. “The failure of Europe’s leaders to draw lessons from the last Trump presidency is now coming back to haunt us,” said Clemens Fuest, president of the Munich-based think tank Ifo Institute. And now, Trump’s election through this first week shows that we, too, will not learn from our lessons.
Europe’s issues mirror the economic and alleged immigration issues that Trump raised, though it is partly because of immigration that we’ve maintained relative demographic health. As China (which has its own population issues and GDP stall) expands its global economic influence through strategic partnerships, the United States is effectively (and unnecessarily) isolating itself from its strongest allies. It’s like punching yourself in the face to intimidate your best friend.
The proposed tariffs, therefore, is a comparatively rudimentary 20th-century solution being shoved onto increasingly complex 21st-century problems, driven more by self-immolating ideological fervor than remotely sound economic or strategic thinking. In other words, nothing about any of this economic agenda makes sense.
Published: Jan 29, 2025 07:35 am