The Wall Street Journal editorial board on Tuesday published a scathing piece aimed at President Donald Trump, who on Monday imposed 50% tariffs on most Canadian goods over his perceived discrimination from the country against U.S. vehicle, alcohol and dairy products.
“President Trump is conceding that his blunderbuss border taxes are harming U.S. business as other countries retaliate,” the board wrote. “So now he’s whacking Canada harder for punching back. The trade brawl could leave both countries with more bruises than a hockey fight.”
Read the full editorial at The Wall Street Journal.
The White House on Monday invoked Section 338 of the 1930 Tariff Act to impose 50% levies on hundreds of Canadian products, including beer, honey, fishing rods and hockey sticks. The Journal believes these tariffs, set to take effect in 30 days, are being used as “leverage.”
The conservative board also argued that Trumps method’s have been historically unwise.
“Section 338 lets the President impose tariffs up to 50% on countries that discriminate against ‘commerce of the United States, directly or indirectly’ in relation to foreign countries,” the Journal wrote Tuesday. “No previous President has used this power.”
The board went on to note that this power “hails from the disastrous Smoot-Hawley Act,” which was devised in 1929 by Sen. Reed Smoot (R-Utah) and Rep. Willis C. Hawley (R-Ore.) in response to the start of the Great Depression.
While the stated aim was to protect American jobs and labor by imposing higher tariffs on foreign goods, the Smoot-Hawley Act spurred a global trade war — as the U.S. unemployment rate more than tripled, according to the libertarian Foundation for Economic Education.
Alex Brandon/Associated Press
“Mr. Trump is using the law to punish Canada for retaliating against his tariffs,” wrote the Journal’s board. “His tariff order cites Canada’s 25% tariffs on U.S. cars that exceed certain quotes, which were a response to Mr. Trump’s 25% duties on motor vehicles and parts.”
It continued, “According to the order, U.S. motor vehicle exports to Canada subsequently fell 22%, while Canadian imports from other countries increased. His order lambastes Canadian provinces for restricting sales of U.S. alcoholic beverages.”
The editorial noted that Canadian imports of U.S. alcohol have “fallen by 81%,” while the Canadian imports for those same goods from Chile, Japan, Ireland, Argentina, New Zealand and Australia have doubled — from 13% to 26%.
Chris R. Swonger, president of the Distilled Spirits Council of the U.S., told the Journal that Trump’s decision “raises the risk of further retaliation” from global trade partners at a time when U.S. hospitality businesses “continue to face financial hardships.”
The board argued in conclusion: “Trump’s tariffs are complicating cross-border supply chains, raising costs and creating uncertainty for business. The more Mr. Trump keeps swinging recklessly, the more Americans are likely to think there’s only madness in his tariff methods.”