Plus, we cover election results from Wisconsin and Florida.
Today is, in President Trump’s telling, “Liberation Day.” For decades, many countries have imposed higher trade barriers on the United States than America does on them. In a Rose Garden event, Trump plans to strike back with tariffs that he claims will be “reciprocal” — ones that merely counter the penalties of other nations.
The logic is intuitive: Why shouldn’t we impose tariffs on countries that have imposed tariffs on us? Europe’s tax on U.S. cars, for instance, has been four times as high as America’s tax on European vehicles. That doesn’t seem fair.
Past presidents asked the same question — and came to a different conclusion than Trump did. They saw such tariffs as self-harm. That’s because America would lose more in a global trade war than every major economy except Mexico, experts estimate.
Today’s newsletter explains how tariffs can hurt the U.S. economy — and why Trump believes they are worth it anyway.
Consider how America has benefited from freer trade. Yes, it meant cheaper shirts, cars and phones. But it also allowed the country to play to its more profitable strengths.
