Trump’s Giant Unforced Error, Part 3

We did not describe Trump’s “Liberation Day” on April 2nd as a Demolition Derby to be snarky. With both a 124% Trump Tariff on China now going into effect and a 84% retaliatory tariff emanating from Beijing just two days ago, we are indeed in a full-fledged trade war. And Demolition Derby describes exactly what is likely to ensue.

Needless to say, the unfolding global trade imbroglio is entirely an unforced error. To repeat yet again: Foreign tariffs and NTBs (nontariff barriers) are absolutely not the cause of massive and chronic US trade deficits. To the contrary, the latter are self-inflicted owing to the relentless pro-inflation policies of the Fed here at home.