Trump’s Tariff Gambit: How to Win a Trade War with Mexico and Canada
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Trump's tariffs are part of a calculated strategy aimed at achieving specific policy goals.
The White House announced Feb. 1 that President Trump was implementing new 25 percent tariffs on imports from Canada and Mexico, and an additional 10 percent tariff on imports from China. It is an unpopular move, as demonstrated by the earlier letter to Trump from former U.S. Treasury Secretary Larry Summers and former Senate Banking Committee Chairman Phil Gramm (R-Texas), detailing how tariffs will be bad for America and the world, and signed by more than 1,000 economists.
But opposition from globalists and economists does not mean that tariffs might not benefit the U.S. To many, a trade war evokes images of economic chaos. But within the Trumpian playbook, it’s a calculated strategy aimed at achieving specific policy goals.
In Trump’s view, the unique economic relationship between the U.S. and its North American neighbors presents an opportunity for the U.S. to emerge victorious. The key lies in understanding the inherent vulnerabilities of Mexico and Canada, both of whom send more than 75 percent of their exports to the U.S. This dependence forms the bedrock of Trump’s strategy.
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