The Guardian view on Trump’s economic threats: bullies can overplay their hand
Tariffs on Canada, threats against Iran’s partners and bond market intervention show a president weaponising US power while making Americans poorer at home
TL;DR
- The US has imposed significant tariffs on Canadian goods and threatened further measures on automotive and steel imports.
- The Treasury has threatened to cut off Iran's trading partners from the US financial system.
- The Treasury intervened to manage long-term bond yields, which had risen due to factors like tariffs, war costs, and tax cuts.
- These policies are seen as a gamble that US economic power can be weaponized without eroding global reliance on the US.
- Tariffs are described as economically damaging and legally questionable, increasing costs for US households and making US manufacturing more expensive.
- Targeting Canada is viewed as picking on a 'soft target,' while China is seen as a more complex challenge.
- The article suggests that repeated use of economic power could lead other nations to seek alternatives to the US-dominated system.