Who has to pay for that?
#337
Photog: Good morning, Economist.
Econ: Good morning, Photographer.
Photog: The trade war that Donald Trump started seems to spiral out of control.
Econ: Never before has a US president raised tariffs as quickly and massively as Donald Trump. Have a look at this chart.
Photog: The curve rises steeply upwards.
Econ: Based on sales, around 15 per cent of all products and services in the US come from abroad. Prices for these products are now rising massively. When will the majority of people in the USA understand that they are the ones who have to pay for this increase? With their income. That they will buy less with the same amount of money. Because tariff increases are nothing other than tax increases, only for a specific group of products, namely those that cross the border. And what story will Trump tell when people realise that what he is doing is one thing above all: harmful to the vast majority of Americans?
Photog: Tell me.
Econ: At its core, it will be a story like all populists and extremists tell: that others are to blame for the disaster. That there are enemies that must be fought. And that once this battle is won, a golden age will dawn. That's never been true of extremists; no 1,000-year empire has ever dawned, no golden age. Because a policy of confrontation, hostility, and destruction doesn't bring peace or prosperity. Trump isn't the first, and he won't be the last, to promise it anyway, and too many people still believe such stories. Trump is on the verge of plunging his country, and not only his country, into chaos.
Photog: What to do?
Econ: The sooner and the more people resist, the greater the chance of preventing a catastrophe.
Photog: Are there any signs of resistance?
Econ: There are. The so-called "Hands Off" movement in the US appears to be becoming increasingly organised. Almost 200 organisations have joined the movement, including the American Civil Liberties Union, Human Rights Campaign, and Women's March. Last weekend, there were 1,200 protests in all 50 states of the US.
Photog: So there is hope, Economist?
Econ: There is always hope, Photographer!
Photog: See you in Democracy.
Econ: See you in Democracy.
Related: Trump’s tariff onslaught against China launches a battle the US may not be able to win (CNN)
