Just When Wall Street and Corporate America Were Looking Forward to a Year Without Trade Fears, the ‘Tariff King’ Strikes Again

From the article:

Tariffs are back on the agenda again only a few weeks into the new year. On Saturday, Trump announced eight NATO allies would be hit with 10% tariffs next month that will rise to 25% by June, until a “Deal is reached for the Complete and Total purchase of Greenland”.

Now the U.S. faces a new cycle of retaliation and escalation. On Saturday, French president Emmanuel Macron hinted at what comes next:

“Tariff threats are unacceptable and have no place in this context. Europeans will respond in a united and coordinated manner should they be confirmed. We will ensure that European sovereignty is upheld.”

Trade-exposed sectors of the economy have already suffered a heavy toll from the tariffs. For example, manufacturers have shed over 70,000 jobs since Trump unveiled his “Liberation Day” tariffs.

The Institute for Supply Management’s manufacturing index has been in negative territory for 10 months, meaning activity has been contracting.

“Most economic models don’t quantify the geopolitical and relational damage caused by erratic tariffs on allies,” Erica York, vice president of tax policy at the Tax Foundation, said. “Trump’s tariff policies impose real costs that go far beyond higher taxes and slower GDP growth.”