A significant diplomatic fallout erupted. New confusion also suddenly arose due to the apparent shift in Trump’s policy priorities.
The Trump administration needs to tell the truth about this 20 percent border tax adjustment. Further obfuscation elevates the risk that any U.S.-imposed border tax adjustment would lead to an immediate trade dispute, that the United States would lose that dispute and that the U.S. would face internationally sanctioned retaliation.
Worse, further U.S. rhetoric and escalation could even force trading partners to seek vigilante justice. They could address their own trade problems in ways that lead everyone into an inadvertent trade war. This would result in considerable economic pain to U.S. companies and U.S. jobs.
Read the full essay here: Column: Trump’s border tax is not the right fix for U.S.-Mexico trade | PBS NewsHour