“It’s not a tariff per se, it is an action of domestic policy,” Trump’s commerce secretary nominee Howard Lutnick told lawmakers at his confirmation hearing last month.
“I don’t think anyone should be surprised about these tariffs or tariff threats,” said Christine McDaniel, a senior research fellow at the Mercatus Center.
Trump “has been very clear that he sees them as an important tool in his toolkit,” added McDaniel, a former official in George W Bush’s administration. “He views this as as much of a negotiating tool, as he does in trying to balance trade.”
“UPSETTING THE APPLECART”
Stephen Moore, a longtime external Trump advisor, sees tariffs as a way to “incentivise” countries to act in US interests, saying that partners like Canada, Mexico and China risk bigger losses economically than the United States.
While he believes Trump’s approach has been effective, he conceded it could be dangerous if it triggered escalating trade tensions with partners like Canada.
Similarly, Washington would want a “strong and stable economy in Mexico”, added Moore, a senior visiting fellow at The Heritage Foundation.
Inu Manak, a fellow for trade policy at the Council on Foreign Relations, warned that Trump’s tariffs could backfire.
Besides threatening tit-for-tat tariffs, Canadians also offered a “cultural response,” with people booing the US national anthem at sporting events, she said.
“This is really damaging the United States’ reputation, and I think that’s something we need to be concerned about in the long term,” she said.
