How the 1st term trade war hurt Trump
Donald Trump has now unilaterally imposed huge global tariffs, upending the world economy. But we did get a preview of Trump’s trade approach in his first term, allowing researchers to analyze the political consequences. Thiemo Fetzer finds that China, the EU, Canada, and Mexico reacted to the first term tariffs strategically, trying to hurt Trump’s constituents. Omer Solodoch finds that the first term trade war announcement immediately hurt Trump politically, reducing approval and affecting voting intentions. They both say the new trade war is bigger, with political consequences likely to grow.