I regret to inform you that we have entered the stage of Donald Trump’s presidency where tariffs are becoming a staple in his proverbial pantry and a tool in his garage with which to intimidate and strong-arm ad nauseum.
We’re seeing chaotic political moves play out internationally, sending nations and Americans into a back-and-forth that I hope can avoid trade wars.
It started on Saturday when President Trump put a 25% tariff on Canadian and Mexican imports and a 10% tariff on energy products from Canada.
By early Monday, Trump had reached a one-month agreement to delay tariffs in exchange for Mexican President Claudia Sheinbaum sending 10,000 National Guard troops to its northern border. Trump also agreed to slow down the flow of American weapons south of the border. Then, Monday evening, news broke that Trump had also agreed on a pause with Canada.
Trump needs to fix the economy. Tariff threats might not help.
One of Trump’s many campaign promises was to lift the American economy out of the doldrums of Joe Biden’s inflation-riddled disaster. One way he would fail this goal is by implementing tariff policies that increase consumer prices.
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As this expert in trade policies warned for USA TODAY Opinion, tariffs hurt our economy when Trump implemented them during his first term.
However, at the same time, they do seem to work as a short-term strategy for strong-arming another country into doing something that helps achieve his other policy goals. I applauded Trump’s use of the tariff threat to Colombia last week when it worked to force the country to accept deported migrants on military planes. But perhaps I was too giddy too soon.
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Trump is a glutton for praise. I didn’t mean that he should wield the tariff sword haphazardly and often.
Using economic leverage that could actually impact everyday consumers to get another country to cower or fold − on a weekly basis − seems like a risk. A risk that could backfire on the American consumer. Plus, there’s a trick: Tariffs only work as a strong-arm move if the other countries can be strong-armed.
Trump should use this with caution and so far, it seems like it’s one of the only tricks in his playbook. He must remain focused and remember his long-term goal: Fix the economy with the policies he has influence over.
Trump’s tariff threats create multistate chaos
Canada initially responded with threats of retaliatory tariffs against Republican or swing states.
Texas Gov. Greg Abbott warned Canadian Prime Minister Justin Trudeau to be “careful.”
“Careful Trudeau. The Texas economy is larger than Canada’s. And we’re not afraid to use it,” Abbott posted on X.
“Canadians understand that we need to respond to this,” Prime Minister Justin Trudeau said Saturday night. “We need to respond in a way that is appropriate, that is measured but forceful, that meets the moment.” Let’s see how this goes for Trudeau, hardly a mastermind of economic fortitude.
Politico reported that Trudeau’s list of tariffs, which were going to take affect Tuesday, includes fruit from Florida, household appliances from South Carolina and Ohio, and motorcycles and coffee from southern Pennsylvania. These are all states that went Trump in the election.
While it appears Trump’s gamble has worked again, this time with Mexico and Canada, that’s quite a whirlwind of chaos.
Texas is the epitome of Trump’s agenda
Canada might have been onto something targeting Trump allies like Texas. It has been a conservative state for a long time, and Trump’s conservative agenda continues to unfold in my state, thanks to Abbott’s implementation, with remarkable speed.
In his State of the State address Sunday night, Abbott vowed to pass even more property tax relief, raise teacher pay and, finally, enact universal school choice.
The president supports this, too. He just issued an executive order that would enact a federal school choice initiative.
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Abbott’s right to scold Trudeau’s retaliatory tariff attempts. The Texas economy is second only to California’s. In 2022, Texas accounted for more than 9% of the U.S. gross domestic product.
But Texas is really the epicenter of Trump’s focus on immigration and border security, which Trump has helped secure by ordering the U.S. Customs and Border Protection app, used to fast-track the immigration process, to be disabled. He has also deployed troops to the border as a further deterrent to illegal crossings.
Still, Trump should use tariffs as a threat more sparingly. He promised to aid the economy, and he must remain focused. Tariffs won’t help him do that.
As for Texas, it reflects Trump’s agenda. And why not? Who wouldn’t want unleashed energy, school choice for all, no income tax and a thriving economy?
Nicole Russell is an opinion columnist with USA TODAY. She lives in Texas with her four kids. Sign up for her newsletter, The Right Track, and get it delivered to your inbox.
