US Tariffs on Canada, Mexico, and China: A Bad Idea

The US is set to impose tariffs on Canada, Mexico, and China, starting at midnight on Tuesday. The tariffs, which include 25% on Mexico and Canada, and 10% on China, have been met with widespread criticism. Many experts believe that the tariffs will have severe economic consequences and are a bad idea.

The affected currencies have already started to feel the pinch, with the offshore Chinese yuan nearing an all-time low against the US dollar, and the Canadian dollar dropping to a 22-year low. Despite warnings from experts, the tariffs haven't been priced in, leading to a dramatic reaction in the markets.

But will the tariffs actually come into effect? Some experts, like Andrew Bishop of Signum Global Advisors, believe that the tariffs are just a paper threat and will be postponed or canceled altogether. Others, like Peter Tchir of Academy Securities, argue that the tariffs are linked to the flow of fentanyl and could be rescinded if the targeted countries show improved efforts to stop its manufacture and distribution.

However, not everyone is optimistic. George Saravelos of Deutsche Bank AG believes that the tariffs are a worst-case outcome and that there is no clear off-ramp. The tariffs could have sustained effects and profound consequences for the global order.

So, why are the tariffs a bad idea? The greatest objection is that they're simply stupid. Even if we accept that globalization has gone too far and that Trump was elected as Tariff Man, the tariffs are still a bad idea. They will have severe economic consequences, and it's unclear what the US hopes to achieve with them.

The tariffs are also a step backward for the global economy. They will lead to higher prices, reduced trade, and economic instability. It's unclear what the future holds, but one thing is certain: the tariffs are a bad idea that will have far-reaching consequences.

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