President Donald Trump describing his new tariff announcement as "Liberation Day" is perhaps an apt description of his "liberating" families from their wallets.
After all, Trump inherited a growing (if imperfect) economy that just 10 weeks later is facing collapsing consumer confidence, paralyzed business investment, rising prices, deepening job losses and a cratering stock market. Business cycles will inevitably bring occasional downturns, but this economic decline has the rare attribute of being entirely self-inflicted by the current president.
The president's minimum global tariff rate of 10% and country-specific rates as high as 50% are nearly impossible to justify. They are not designed to retaliate against unfair trading practices.
Nor are the White House tariff rates based on relationships with the U.S. The tariff rates on the European Union (20%), Japan (24%), and Israel (17%) are more punitive than the tariff on Iran (10%). Russia — from whom America still purchases some imports — is also protected from above-minimum tariffs. There is no coherent strategy behind these country-by-country tariff rates.
This is a preview of Jessica Riedl's latest article. Read the full column here.
