Economists from Scotiabank crunched some numbers and concluded that the global tariff war between Donald Trump and the rest of the world could send us all into recession if it continues.
Well, thank you for that, Captain Obvious. I think most of us feared that conclusion from the moment President Trump fired the first shot in this war with the punitive steel and aluminum tariffs on Canada and other G7 allies.
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Trump doubled down on his short-sighted and inflammatory policies by slapping significant tariffs on China late last week.
Remarkably, Trump doesn’t understand or doesn’t care that his tariff war will harm American jobs and local economies as well.
That’s underscored by Trump’s threat to impose tariffs on the auto sector, which would have devastating effects to auto workers on both sides of the border.
Clearly, Trump doesn’t seek fair trade deals. He craves dominance and submission from American allies.
That tactic might work in Washington, where Trump is emboldened by spineless congressional leaders who allow him to say and do whatever he wants.
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But, on the international stage, G7 members don’t tolerate his bully tactics and they will push back.
It’s regrettable that this tariff and trade war could cause a severe economic downturn, even in America. But, after all, when the Americans chose a megalomaniac like Trump to run their country, what did they think would happen?
Bill Kelly is the host of Bill Kelly Show on Global News Radio 900 CHML.