Trump’s trade war has pushed up inflation, slashed US job gains, slowed economic growth and caused the manufacturing sector to sputter
T
he ever-bombastic Donald Trump has boasted repeatedly of his trade victories, while White House news releases trumpet his “historic trade wins”. The Wall Street Journal echoed Trump’s triumphalism with a headline saying, “Trump is Winning His Trade War”, and last week the New York Times used the exact same words in a headline. That must have been music to the president’s ears.
Forgive me for being a spoilsport, but I don’t see where the victory is or how Trump is winning. I keep reading how Trump’s trade war and tariff machinations have pushed up inflation, slashed US job gains, slowed economic growth and caused the manufacturing sector to sputter.
The rate of job growth plunged by over 70% in the three months after Trump unveiled his 2 April “liberation day” tariffs that filled corporate executives with uncertainty and dread. Trump is palpably impatient for the Federal Reserve to cut interest rates, but the higher prices resulting from his tariffs are likely to delay the rate cuts he desperately wants. So can someone please tell me where is the victory here?
