US bullying erodes values that made US world leader

In launching an unnecessary and poorly conceived trade war — particularly against China — US President Donald Trump has committed at least three serious strategic errors. Each of these errors carries significant consequences not only for the United States but also for the balance of global economic power.

First, the US administration has underestimated the harmful impact the trade war will have on the US economy. Second, it has misjudged the strength and adaptability of the Chinese economy. Third, and perhaps most dangerously, it has failed to see the long-term risk of the US being increasingly sidelined in new forms of globalization, many of which are already taking shape thanks to the efforts of China and some other countries.

To begin with, the idea that the US economy can emerge stronger from a tariff-fueled trade war reflects a misunderstanding of the global economic system. The imposition of tariffs on a wide range of imports leads to increased costs for US businesses and consumers alike. As input materials become more expensive, manufacturers face shrinking margins, and retailers are compelled to raise prices.