

Tumultuous Trade Trilemma
The winds of political change and the new US trade policy are imperiling the permanence of American exceptionalism. First, expanding tariffs will lead to countermeasures, decreasing global efficiency. Second, higher prices will lower demand for the US consumer, obviating the need to invest in US manufacturing. Third, the political objective of increasing US exports is incompatible with the first two objectives. Furthermore, tariffs cannot generate sufficient revenue.



