ICYMI: The US president’s tariffs pose as worker protection, but they’re a smokescreen – his bluster trades US credibility for a $4.6tn tax-cutting giveaway to the rich
In 2020, Donald Trump scrapped the North American free trade agreement, replacing it with the “United States Mexico Canada agreement”, which he bragged was “the fairest, most balanced, and beneficial” trade deal ever. That agreement between the three nations explicitly bans tariff hikes beyond what was agreed. Yet, on his return to the White House, Mr Trump immediately threatened steep levies on goods from Canada and Mexico – the US’s key allies – retreating only after they made token concessions on drugs and illegal immigration. Now, he’s vowing fresh steel and aluminum tariffs, a direct hit on Canada.
Mr Trump is exploiting presidential emergency powers to push these tariffs with no real constraints. The bottom line is the US is breaking its word. Friends, such as the EU and the UK, as well as opponents like China are also under threat. Allies will think twice before signing deals with Washington, fearing future betrayals. Yet Mr Trump’s administration doesn’t care – it thrives on defying global norms. Skipping this year’s G20 summit – citing host South Africa’s focus on diversity, equality and climate action, alongside Elon Musk’s fixation on white South African farmers – Mr Trump’s team is mulling an exit from the IMF and World Bank. Continue reading…
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