Here’s what I take away from Trump’s announcement on steel and aluminum tariffs:
- To Trump, not all jobs are created equal. Jobs that are typically done by strong men matter; others don’t. Brawny coal miners and steelworkers are his kind of people; installers of solar panels and sales clerks aren’t.
- At a time when we need the assistance of our erstwhile allies in pushing back North Korea, Iran, China, and Russia, launching a war against the entire world makes absolutely no sense. That, of course, counts for nothing; it’s all about pleasing his base.
- How will the world retaliate? The politics of this will matter. Trump doesn’t care if Boeing loses, but he and his party will be concerned if the impacts are felt largely by farmers.
- Trump clearly believes that American market power, like American military power, is so predominant that we can tell the rest of the world where to go and get away with it. That, of course, feeds into the narrative spread by Putin and Xi that irresponsible American power needs to be checked. It’s probably also dead wrong.
- This is one area in which the interests of the Reactionaries and the PBPs are completely opposed. How will the GOP react? Will there be any really effective opposition to a trade war? I’m guessing we will hear some loud complaints, but see no real action.
- The good news is that the trade war will probably force the Democrats to embrace free trade instead of trying to outbid the GOP.