Trump tariffs could backfire on military, some experts warn
• Trump’s tariffs could backfire on the military, according to experts.
• The Trump administration’s plans to impose tariffs on a wide range of products and materials, including materials critical to the nation’s defense supply chain, could increase military programs’ costs and cause delays.
• The head of Unifor, a Canadian union representing workers in the automotive and other industries, warned that the 25% tariffs announced by Trump could cause a broad swath of pain.
• Trump’s tariff tactics carry higher economic risks than during his first days in office.
• The tariffs on Canada and Mexico were paused for 30 days to allow more negotiations after those countries agreed to do more to stop the flow of illegal drugs and undocumented workers into the United States.
• However, Trump went ahead with the 10% tariffs on China Tuesday, which Beijing promptly retaliated by imposing tariffs on U.S. products.
• The cascade of negative effects could become a byproduct of the intended benefits, which include pushing companies to reduce costs.
• Goldman Sachs thinks the tariffs could raise core consumer prices, which exclude food and energy, by as much as 0.9%.
