Expecting the unexpected from President Trump is like drying off after a shower-you can choose not to, but you'll be more comfortable if you did.
Unfortunately, that approach still wouldn't have prepared you for his trade announcement last week. In an attempt to keep his election promise of fixing the U.S.'s massive trade deficit, Trump announced he wants to apply tariffs of 10% and 25% on all imports of aluminum and steel, respectively.
Although planned to apply "without exceptions," the announcement may be most targeted to the current NAFTA negotiations, as Canada is the largest supplier of both metals to the U.S., while Mexico is the fourth-largest supplier of steel and seventh-largest of aluminum.
Should these tariffs be implemented, it stands to reason that many, if not all, countries that export steel and aluminum to the U.S. will retaliate with their own tariffs. From there, it doesn't take much imagination to envision a spiral of subsequent tariffs and counter tariffs, turning global trade on its head with major economic implications.
Although, most economic predictions aren't worth the paper they're printed on, a strong majority of economists agree that trade wars hurt everyone involved. Let us hope this announcement is more posturing than true intent-otherwise, we'll all need a shower before things are finished.
