In an op-ed from the conservative Wall Street Journal, the editorial board called out President Donald Trump for allegedly making “the biggest policy blunder of his presidency.”
Trump shocked aides and advisors Thursday with his announcement of a trade war by imposing a 25 percent tariff on foreign steel and 10 percent on aluminum. The Journal wrote that the move would “punish American workers” and would ultimately “invite retaliation” from other nations that would “harm U.S. exports.”
Trump campaigned on such tariffs, but it was presumed his choice of economic advisors from Wall Street would never allow the pledge to come to fruition. The news today prompted the Stock Market to fall 420 points and senior economic advisor Gary Cohn threatened to resign.
“Apparently Mr. Trump can’t stand all this winning,” The Journal wrote. They predict a few American companies will do well for a short time, but that in the long-term, it will harm the U.S.
“We have with us the biggest steel companies in the United States. They used to be a lot bigger, but they’re going to be a lot bigger again,” they cited Trump saying Thursday.
“No, they won’t,” The Journal said simply. “The immediate impact will be to make the U.S. an island of high-priced steel and aluminum. The U.S. companies will raise their prices to nearly match the tariffs while snatching some market share. The additional profits will flow to executives in higher bonuses and shareholders, at least until the higher prices hurt their steel and aluminum-using customers. Then U.S. steel and aluminum makers will be hurt as well.”