Source: The Atlantic
by Jonathan Chait
“Donald Trump had a plan. It was not a good plan, or even a plausible one. But it was, at least, a coherent plan: By imposing large trade barriers on the entire world, he would create an incentive for American business to manufacture and grow all the goods the country previously imported. Whatever chance this plan had to succeed is already over. The key to making it work was to convince businesses that the new arrangement is durable. Nobody is going to invest in building new factories in the United States to create goods that until last week could be imported more cheaply unless they’re certain that the tariffs making the domestic version more competitive will stay in place.” (04/04/25)