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Trump’s tariffs and inflation fatigue are a toxic brew
The next White House may not have the leverage it expects in trade negotiations.
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The US is coming off the worst inflation in 40 years and still struggling with mortgage rates.
PHOTO: AFP
Jonathan Levin
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Donald Trump’s allies tell us that tariffs are principally a negotiating tool rather than a tax on consumers: If you threaten America’s trade partners with new duties, they’ll immediately cave in and provide more favourable terms for the exports it produces domestically and sell into their markets.
Key to that logic is the idea that the US has all the leverage, and that just isn’t true in the current macroeconomic environment.
