WSJ editorial board on tariffs: "Mr. Trump can’t say he wasn’t warned"

This isn’t cause for panic, but it is for tariff caution.  Mr. Trump is promising to impose his 25% levies on Mexico and Canada this week, which will send auto and other North American supply chains into chaos.  China gets hit with another 10% border tax, with European cars up next, followed by reciprocal tariffs on most of the world. 

A tariff is a tax, and taxes impose costs that reduce economic activity.  They also add uncertainty about where and how businesses should invest, as CEOs try to figure out where the tariffs will strike, on which goods, and for how long.  Will there be exceptions? 

If growth continues to slow, Mr. Trump can’t say he wasn’t warned.

~ The editorial board, "Tariffs and the Slowing Economy," The Wall Street Journal, March 2, 2025