Trump’s Golden Age Begins With a Brutal Trade War

If tariffs evolve from a negotiating tactic to a new normal, economic and diplomatic costs to all of North America will grow

By Greg Ip. Excerpts:

"Studies of past tariffs, though, show that gains to producers are more than offset by losses to consumers. Steel users are already complaining. Based on previous tariff episodes, Goldman Sachs expects consumers to pay 70% of the new tariffs on Mexico, Canada and China, amounting to $260 billion a year. 

The cost to consumers comes not just in the form of higher prices, but the products they never buy because they aren’t available or are too expensive."

"Anderson Economic Group, a business consulting firm, estimates tariffs will add $4,000 to $10,000 to the cost of a North American-built vehicle. For models with few substitutes, 75% to 80% of that will be passed on to consumers, reducing affordability and thus sales"

"some models and options will simply no longer be available because they can’t be built at a price acceptable to the consumer"

"In Canada, Trump’s tariffs and professed aim of annexation have aroused a wave of nationalism and anger with little modern precedent."