The Wall Street Journal’s editorial board has sharply criticized former President Donald Trump’s new tariffs on Canada, Mexico, and China as “the dumbest trade war in history,” arguing the measures lack strategic rationale and threaten to harm U.S. consumers, industries, and diplomatic relationships.
Twenty-five percent tariffs on imports from Canada and Mexico, and 10% tariffs on Chinese goods, set to take effect February 1, 2025. The administration cited border drug trafficking as justification, but the WSJ called this reasoning “nonsensical,” noting drugs have flowed for decades and tariffs won’t curb demand. Trump has also floated expanding tariffs to steel, aluminum, oil, gas, and semiconductors, claiming they’ll make the U.S. “very rich and very strong.”
Seriously?
Average families could see $2,600–$4,000 in annual cost increases for goods like cars, electronics, and groceries And auto prices alone may rise by $3,000 per vehicle, exacerbating affordability challenges in a market where the average new car costs $46,200. Gas prices could also jump 25% if tariffs are applied to oil imports.
Canada and Mexico have historically targeted politically sensitive U.S. exports like pork, soybeans, and bourbon in retaliation while Mexico’s president already pledged “Plan A, B, C” responses.
Of note, the tariffs violate the spirit of the U.S.-Mexico-Canada Agreement (USMCA), which Trump previously touted as a historic achievement. The WSJ warns this erodes trust in future deals.
Will that make America great again?
The editorial board also condemned Trump’s apparent vision of a “closed economy,” calling his embrace of tariffs a misguided push toward autarky (economic self-sufficiency) that ignores global supply chains.
When it comes to financial matters, it’s important to consider who truly has your best interests at heart. The Wall Street Journal, with its longstanding reputation for providing reliable and well-researched information, might offer a more trustworthy perspective compared to someone whose history involves the bankrupting of numerous companies.
Analysts warn the tariffs could reignite inflation, particularly for energy and manufacturing sectors as businesses are scrambling to reroute supply chains, with automakers like GM expediting imports and exploring production shifts.
The WSJ compared the move to Trump’s 2018 steel tariffs, which triggered retaliatory measures and economic disruptions.
Over 1,000 economists, including former Trump advisers, have opposed the tariffs in an open letter, calling them a “tax on Americans.”
Even conservative commentators labeled the policy “world-class dumb,” noting its potential to alienate allies while failing to address core issues like fentanyl trafficking.
The WSJ concluded that while Trump might secure minor concessions, a prolonged North American trade war would be “one of the dumbest in history”—a sentiment echoed across bipartisan and industry critique.