The Trump administration has initiated a war on international trade of a scale that has not been seen since the 1930s. Mr. Trump’s speeches and actions demonstrate contempt for economic theory from Adam Smith and David Hume to mainstream economists of today, and for the lessons of historical experience. His policies and their inconsistencies have created uncertainty, inefficiency through massive diversion of trade flows, and a climate ripe for corruption. The initiatives will leave a legacy of lasting damage to the U.S. economy and those of its trading partners, drive countries into closer trading relationships with China, and drain the goodwill toward the U.S., which has lubricated international cooperation in many spheres, including military, development assistance, and climate protection.
Tower et al. (2026) studied this question.