The Atlantic

How Much Damage Will Trump’s Trade War Do?

Higher prices, slowing growth, mounting layoffs—and the indirect costs may be even greater.
Source: Aleksandra Michalska / Reuters

Will Donald Trump’s trade war tip the economy into a recession?

It seems a reasonable question to ask. The White House has initiated a rapidly escalating global tit for tat, with thousands of products from the United States, China, Canada, Mexico, and Europe now affected or threatened by tariffs. The price of imported goods is increasing. The demand for exported goods is falling. American businesses are laying workers off, and some are warning that they might end up bankrupt.

In some sense, Trump could not have picked a better time to engage the country in

You're reading a preview, sign up to read more.

More from The Atlantic

The Atlantic5 min readPolitics
Iran Is Acting Like the International Villain of Trump’s Prophecy
Any number of relatively mundane scenarios now have the potential to escalate U.S.-Iran tensions—from a fire at a militia base to the seizure of an oil tanker to the signal-jamming of a drone.
The Atlantic3 min read
A Book That Examines the Writing Processes of Two Poetry Giants
William Wordsworth and Samuel Taylor Coleridge once spent a grueling year in nature, subsequently producing some of their most resonant works.
The Atlantic2 min readPolitics
The Atlantic Politics & Policy Daily: He’s Back
Robert Mueller is set to testify before Congress tomorrow—will the hearings convince Democrats to begin impeachment proceedings? Plus: Mark Esper is home free.