President
Trump seems intent on starting a trade war. On Monday, he told business
executives at the White House that he would punish companies that shut
factories in the United States and moved jobs overseas by imposing a
“very major” border tax. Such a tax would probably be illegal under American law and would definitely violate treaties with other countries.
Mr. Trump’s remarks came on the same day that he
withdrew from the Trans-Pacific Partnership,
a trade agreement the Obama administration had negotiated with 11
countries, including Australia, Japan and Vietnam, but Congress never
ratified. He also pledged to renegotiate the North American Free Trade
Agreement with Canada and Mexico. In this flurry of activity, he seemed
oblivious to how his actions might affect the economy and millions of
Americans who stand to lose their jobs if he tears up trade agreements
and causes other countries to retaliate by penalizing American goods and
services.
