Well, that was bad. Tariff panic. Stocks cratering. Media howling. Anger. Worry. Despair. All in three days.
So, what now, Morning Joe? “We’ll see!” “Could be a recession.” “Or a depression.” “Maybe you’ll lose the house!”
President Trump’s “Liberation Day” on world trade quickly turned into a root canal without anesthesia. Every American will be negatively affected, at least in the short term. So, let’s analyze the tariff thing with precision.
Donald Trump is correct when he says worldwide trade is unfair to the USA. Most countries benefit far more than America because they put up barriers to keep our products out. Trump believes that “reciprocal tariffs,” that is, we charge individual countries what they charge us, will reform this crooked system.
However, being “right” is not always the pathway to prosperity. Every president since Harry Truman understood the trade imbalance. None of them took it on. Too risky. Trade wars are intense and unpredictable.
Holy Week is almost upon us. Jesus of Nazareth was absolutely right in promoting just behavior based on loving others as you love yourself. They nailed him to jagged wood and watched him slowly die.
Being “right” almost always has consequences. That’s why it’s often rejected or ignored.
So, what should happen now?
The Trump administration must provide daily economic updates like those we saw during COVID. Calm everything down, trumpet all good news. The president knows his legacy is on the line because powerful Republican senators are telling him that. He is not challenging the political danger. He is hoping better trade deals emerge. There is urgency.
But here’s a huge problem. Washington stands pretty much alone. Other countries don’t want their money messed with. Mr. Trump has few, if any, foreign allies. He will have to compromise if he wants to pacify world markets.
Back home, about a third of Americans will support the president no matter what. But with midterm elections 20 months away, there is growing pressure on the Republican party. President Bush. the elder, roiled the markets by raising taxes. The GOP lost it all in 1992.
As for the folks, you, here’s my advice: Don’t sell. The market will come back. Don’t panic. That action is useless. You can vent but that’s it. History is unfolding. No one can stop it. In the words of Winston Churchill, carry on.
Finally, avoid the masochism of consuming dishonest news sources. They will damage you emotionally. We will provide the truth about America’s economic well-being or lack thereof. No spin here. Always.
Donald Trump may win this. He knows his personal destiny has suddenly become very shaky. He is not a man who accepts losing. There is high drama in the air.
All we can do is keep our composure.
