Source: EconLog
by Jon Murphy
“One of the myriad of justifications given for Trump’s love of tariffs is that they are actually a negotiating tool to get the rest of the world to be more fair to American firms. American firms supposedly face high trade and non-trade barriers and these tariffs are to show that ‘we mean business’ and force other countries to the negotiating table. Let’s take that explanation as given. In theory, if tariffs are short-lived enough and can reduce barriers, then that could be acceptable. But, as economists since Adam Smith have noted, the success of such a maneuver is highly dependent on the skill of the negotiator. We have empirical evidence from Trump’s first term as to his skill in such negotiations. The evidence is not in his favor.” (06/10/25)
https://www.econlib.org/trumps-terrible-track-record-on-trade-negotiations/