Trump's Big Mistake

Today, President Trump made a big mistake, one that could cost him his entire agenda.

Readers of this newsletter know that I’ve defended Trump’s tariffs, going so far as to criticize Nobel Prize-winning economists who condemned Trump’s tariffs. It’s true that tariffs may increase prices in the short term, particularly for critical products that are produced only in countries against which tariffs are imposed. However, when tariffs are used to create a level playing field—to equalize competitors in a market where one competitor has an unfair advantage, for example where a government subsidizes production or where the country of manufacture imposes tariffs on American imports—then they’re a good thing.