‘Tariff Man’ Is Back for More ‘Liberation’

Trump cranks up tariffs again, with 25% on Japan and South Korea.

WSJ editorial. Excerpts:

"The U.S. last year imported $148.4 billion in goods from Japan and $131.6 billion from South Korea. Together that was about 8.6% of total U.S. imports.

Looking through the trade data, is it easy to see how Mr. Trump’s tariffs will hurt American businesses and consumers. Imports from Japan last year included $9.9 billion in assorted industrial machines, $7.5 billion in pharmaceutical preparations, and $3.1 billion in medicinal equipment. South Korea sent over $8.5 billion in semiconductors, $7.4 billion in computer accessories, and $3.2 billion in household appliances.

If Mr. Trump slaps on 25% tariffs, some of this trade might grind to a halt. Having less competition in the market for washing machines, say, isn’t to the American homeowner’s benefit. Businesses in the U.S. that rely on highly specialized industrial machines might not have easy alternatives to Japanese and South Korean imports. Meantime, the trade ructions and uncertainty make it harder to plan and invest."

"There’s a mood of triumphalism in MAGA circles because the sky didn’t fall after Mr. Trump announced the highest tariffs in memory on April 2. But he retreated from that fiasco after a financial market panic. Mr. Trump’s tariffs on present course would take $300 billion in border taxes from the productive economy this year, and he seems bent on going higher. That’s an anti-growth tax increase, and an arbitrary one besides."