Trump tariff tantrum must end

Now it’s a matter of national urgency. President Donald Trump must immediately pull back from the global trade turmoil he triggered by moving to impose tariffs on U.S. allies and rivals alike. It’s time to contain the self-imposed damage with a pause of the trade wars.

Financial markets have reacted to his tariff blitz as if pleading for mercy. On Monday, the Dow Jones Industrial Average dropped another 349 points by the closing bell. Since last Wednesday, which Trump hyped as "Liberation Day," the Dow has marked a stunning net drop of 4,259 points. The S&P 500 index lost more than 10% of its value over the period.

But Trump on Monday was keeping his foot on the gas, refusing to stanch the bleeding.

For middle-class and working-class Long Islanders whose retirement savings are in 401(k)'s and other investment vehicles, it’s nothing short of rattling. Some are tempted to take rash measures to flee the markets against financial analysts’ advice. Others have hurried big purchases such as cars, anticipating a price spike. Businesses are stymied in their planning. Workers fears layoffs. The gloom of uncertainty is real. 

Done properly, tariffs can prod other nations to trade fairly. Tariffs ordered in Trump’s earlier term, including on China, were rightly preserved through the Biden years. Contrary to White House messaging, tariffs are basically a sales tax imposed on imported goods. Taxes paid by industry are passed on to consumers in the products they sell. They are inflationary; Trump promised to end inflation. He did not promise a recession, which some economists now expect. Trump seems to see tariffs as a cure-all — calling them "medicine" to heal the economy. There has been no effort to illustrate clearly just how this disruption is supposed to benefit us or when.

Pulling back is especially advisable politically as clear cracks emerge within the White House and the Republican Party. Elon Musk, the world's richest man and a top Trump adviser, lost nearly $31 billion in the Thursday-Friday meltdown, according to Bloomberg's Billionaires Index. He's been going toe-to-toe with Peter Navarro, the president’s trade guru since 2017. Musk wants a free-trade zone between the U.S. and Europe. Navarro says dismissively, "We just have to understand. Elon sells cars."

Foreign relations also are unnecessarily at risk. Old allies have new incentives to look past the U.S. and find trade partners who could prove less erratic. China's ascent will accelerate as it appears the more stable nation following traditional rules of trade, while the U.S. is seen as unreliable and protectionist. China shows no sign of backing off when it could come out a winner of Trump's attempts to whipsaw the world's economies. 

Trump has to start reaching deals. He must try for real to prove his negotiating ability isn’t just an old boast. For the American public’s sake, the convulsions on Wall Street must end now as must his extreme tariff fever.