In the #News #Economy #Politics - Tariff Shell Game
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Tariff Shell Game
The White House has recently shifted its trade policy approach, moving away from broad, across-the-board tariffs to a more targeted strategy involving reciprocal tariffs. This means the U.S. is now focusing on matching the tariffs imposed by other countries on American goods. The aim is to address trade imbalances and ensure fairness in international trade relationships.
This change reflects a more calculated approach to trade, targeting specific nations with persistent trade deficits with the U.S., rather than applying blanket tariffs across all sectors. It’s a significant pivot in trade policy, with potential implications for global economic dynamics.
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We have been clear about the impacts of tariffs on the global economy (see America’s Liberation Day, April 2 Review). There is no free lunch on the subject. So why is the White House engaging in a tariff shell game? Is it about scoring political points, appealing to its base, or is there some grand plan unfolding behind the scenes? The invisible hand of the market will dismantle any human-devised grand plan, so it’s wise to remain skeptical of the idea that the White House is playing 3-D chess.
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Source: http://www.edegrootinsights.com/2025/03/in-news-economy-politics-tariff-shell.html
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