Although most economists have issued dire warnings about the damage tariffs and other ill-advised policies would cause, the US economy’s aggregate indicators have remained quite robust. Some of the costs may simply have been postponed, but rapid advances in AI could well offset them when they fall due.
US President-elect Donald Trump's administration will face a wary, inflation-sensitive public and a Chinese regime that is well prepared to pursue large-scale retaliation. If it is serious about introducing new tariffs, it will need to clarify its priorities and then choose among conflicting policy goals.
