What was considered to be bluff and bluster from Trump has turned into cold hard reality,” one analyst told us.
President Donald Trump’s sweeping tariffs announced over the weekend — as well as the promise of more punishing measures leveled against some of Washington’s closest trading partners— have alarmed allies and spooked markets about what some fear may spiral into a global trade war.
While most world leaders have been circumspect about the levies against Canada, Mexico and China, economists say that consumers across the world will face spiraling prices as the supply chains that move goods among countries become more exposed to political risk and therefore costlier.
Chrystia Freeland, a contender to be Canada’s prime minister, told MSNBC’s “Morning Joe” on Monday that Trump’ actions were a “colossal act of self-harm,” because the measures would also hurt American exporters trying to sell goods to Canada.
“The fact is, these tariffs are being imposed truly for utterly no reason,” she said. “We think that it is utterly crazy and we’re also really, really angry at you.”
But responses from most of America’s allies, fearing that they might also be the focus of the Trump administration’s tariffs, have been milder than that of Freeland, although that’s not uncommon for for leaders with experience of the president’s negotiating style.
The European Union said that it would “respond firmly” if Trump hits it with tariffs and that it “regrets” the duties he has imposed so far. Japan said it would “carefully examine” the potential impact on global trade.
Independent experts — who do not have to directly do business with Trump for the next four years — have been more plainspoken with their analysis.
“What was considered to be bluff and bluster from Trump has turned into cold hard reality,” Susannah Streeter, head of money and markets at the British investment platform Hargreaves Lansdown, said in an email Monday. “It’s become clear that Trump’s way of doing business is to sow seeds of chaos and unpredictability to gain domestic political wins.”