"Not since the disastrous Smoot-Hawley tariffs of 1930, which deepened the Great Depression, has America resorted to such self-defeating fortress economics," said The Times. But President Trump's universal baseline tariff of 10% on all goods imported into the US, threatens damage "far beyond her shores", too.
What did the commentators say? Trump's so-called "Liberation Day" – a "catalogue of foolishness" fuelled by his "delusions" – heralds America's "total abandonment of the world trading order, and embrace of protectionism", said The Economist.
The EU has already threatened reciprocal tariffs. But trade barriers "harm those who put them up", and are more likely to cause Trump to "double down than retreat". This could make things worse – "possibly catastrophically so", with a spiralling tit-for-tat trade war. Instead, governments should "focus on increasing trade flows among themselves".
But last night Trump said he would come after the EU and Canada with "far larger" tariffs if they worked together. This has opened "a new front in the unfolding trade war", said The New York Times. The US is "far and away" Canada's biggest export market, said Jay Goldberg in the Toronto Sun. Canada needs "a new economic plan" – and quickly. One idea, long talked about, is the establishment of CANZUK, a free-movement, free-trade zone between Canada, Australia, New Zealand and the UK. CANZUK would be the "jet fuel to help turbocharge economic growth at a time when all four countries, and particularly Canada, badly need it".
In a sense, Trump has already "achieved his first global peace deal", said Ambrose Evans-Pritchard in The Telegraph. "China, Japan and South Korea have kissed and made up after years of trade quarrels." China has also "launched a charm offensive to woo European officials", suggesting the two blocs team up against Trump. A possible Sino-European trade truce was "unthinkable just weeks ago", with "daggers drawn" over EU tariffs on Chinese electric vehicles. "But they both have a bigger wolf to contend with today."
What next? Ultimately, the "golden age of global free trade" is over – but that doesn't spell disaster, said law and economics professor Armin Steinbach on The Conversation. In a world of geopolitical conflict, security concerns, not liberalisation, are reshaping trade policy. This requires "shifting away from fragile multilateralism towards more selective, regional alliances".
There is no "avoiding the havoc" Trump has created, said The Economist, but that does not mean his "foolishness" will triumph. |