No. of Recommendations: 15
Trump’s social media account said the president is placing tariffs of 10% on all goods from the countries currently protecting Greenland after February 1, and that the tariffs will increase to 25% on June 1. The post says the tariffs will be in effect “until such time as a Deal is reached for the Complete and Total purchase of Greenland.”
Where is he thinking he’s going to find the money for “the complete and total purchase of Greenland?” And besides, the countries involved—Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the United Kingdom—are all U.S. allies. Economist Justin Wolfers notes this trade war will include the entire European Union, for “[a] trade war with one EU country is a trade war with the entire EU.”
The post also makes explicit that Trump is trying to use tariffs not to nurture the American economy but to force other countries to do his bidding. The question of whether his tariff wars are constitutional because they address what he claims is an economic emergency is currently before the Supreme Court. Two lower courts have found that the president does not have the power to levy the sweeping tariffs he has been announcing. Today’s tariff announcement does not refer at all to economic need but rather is about economic coercion.
Meanwhile, lawmakers in the EU say they will not ratify a new trade agreement the European Commission and Trump signed last July. Some lawmakers are talking about using a trade “bazooka” against the U.S., a range of measures outlined in the E.U.’s Anti-Coercion Instrument that punish trade rivals trying to coerce the E.U. Those include trade restrictions and restricting investment in the E.U.
Finally, in its insistence that only the U.S. can “protect” Greenland, an echo of Russian president Vladimir Putin’s promises to “protect” Ukraine. Ignoring the reality that Greenland is part of the North Atlantic Treaty Organization (NATO), the world’s strongest defense alliance, it said that Greenland and Denmark, of which Greenland is a part, “currently have two dogsleds as protection, one added recently.” It also added that the protection Trump insists only U.S. ownership of Greenland can provide might also include “the possible protection of Canada.”
In the mean time, Prime Minister Mark Carney of Canada visited Beijing this week, the first visit of a Canadian prime minister to China since 2017. On Friday, Canada broke with the U.S. and struck a major deal with China, cutting its tariff on Chinese electric vehicles in exchange for China’s lowering its tariffs on Canadian canola seed. Carney posted on social media: “The Canada-China relationship has been distant and uncertain for nearly a decade. We’re changing that, with a new strategic partnership that benefits the people of both our nations.”
Jeff
