The Wall Street Journal editorial board released a critical article on Tuesday targeting President Donald Trump. This came after Trump announced on Monday a 50% tariff on a majority of Canadian goods, which he perceives as a counter to Canada’s alleged discrimination against U.S. vehicles, 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.
On Monday, the White House invoked Section 338 of the 1930 Tariff Act to implement 50% tariffs on various Canadian goods such as beer, honey, fishing rods, and hockey sticks. The Journal suggests these tariffs, which are scheduled to come into effect in 30 days, are being used as a strategic tool.
The conservative board also contended that Trump’s approach has historically proven 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 further explained that this authority originates from the ill-famed Smoot-Hawley Act, which was devised in 1929 by Sen. Reed Smoot (R-Utah) and Rep. Willis C. Hawley (R-Ore.) as a reaction to the onset of the Great Depression.
Although intended to safeguard American jobs by raising tariffs on foreign products, the Smoot-Hawley Act sparked a global trade conflict, leading to a more than tripling of the U.S. unemployment rate, 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 highlighted that Canadian imports of American alcohol have plummeted by 81%, whereas imports of similar products from countries like Chile, Japan, Ireland, Argentina, New Zealand, and Australia have surged from 13% to 26%.
Chris R. Swonger, leader of the Distilled Spirits Council of the U.S., remarked to the Journal that Trump’s decision heightens the risk of further retaliation from international trade partners, especially as U.S. hospitality businesses continue to face economic challenges.
In conclusion, the board stated: “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.”
