Showing posts with label Free Trade. Show all posts
Showing posts with label Free Trade. Show all posts

Friday, September 25, 2026

Farmers Voted for This

By Kevin D. Williamson

Friday, September 25, 2026

 

American farmers rely on imports for many of their most critical inputs—fertilizer, chemicals, machinery—and rely on exports to large overseas markets such as China for a big part of their profits, and, as such, conducting a series of trade wars fought with tariffs is just about the worst possible economic policy for them as a group. Naturally, American farmers and farming communities keep voting roughly two-to-one for trade wars—a vote for Donald Trump, the guy who insists that “trade wars are good and easy to win,” is a vote for trade wars.

 

Farmers voted for trade wars, and trade wars they got.

 

And—surprise!—agriculture is in something like a full-blown recession, with farm incomes projected to decline by a whopping 5.5 percent in real terms this year. Farm bankruptcies are up 46 percent since 2024, and some 15,000 farming operations went dark last year. This is an entirely predictable outcome of the 2024 presidential election.

 

In much the same way that Americans lately have been promised that gasoline and diesel prices are just on the verge of going back down—and in much the same way that the Republican standard-bearer has been three weeks away from a healthcare plan for 12 years now and running—Trump keeps saying that the Chinese have committed to buying $x billion worth of this or that commodity from U.S. farmers, and—surprise!—those commitments continue to go unrealized, with China being at the moment many, many billions of dollars behind on promised orders from U.S. farmers. “We like to hear commitments from Chinese buyers, but we also need to see beans on boats headed west,” says a board member of the American Soybean Association. It is almost as though one cannot quite trust in the good intentions of an authoritarian police state run by Communist Party oligarchs or in the sound judgment of a serially bankrupt former game show host who once tried to overthrow the U.S. government. Which raises the question:

 

Why are American farmers such a bunch of chumps?

 

Thomas Frank’s famous thesis, spelled out in What’s the Matter with Kansas? How Conservatives Won the Heart of America, is that shady right-wing corporate interests have successfully used culture-war rhetoric and Jesus talk to snooker Middle America’s farmers, blue-collar workers, and small-business owners into—all together now!—“voting against their own interests.” It isn’t a very good thesis, inasmuch as the evidence very strongly suggests that voting in a way that would appear to be at least superficially at odds with one’s self-interest is so common as to be nearly universal in American politics. Americans are not especially self-interested voters.

 

For example, college-educated white voters and college-educated African American voters are, on average, more progressive than the non-college-educated of their respective racial groups, and college-educated white voters in particular are more likely than their non-college counterparts to support redistributive tax and welfare policies that are likely to increase their own tax burden while providing no benefit to them, their families, or, in general, to people who are economically similar to them. The Democrats are the party friendlier toward redistributive tax and welfare policies, and it is the Democrats—not the Republicans—who in recent years have seen the most growth in their support among the educated and affluent most likely to be disadvantaged by those policies. As Sam Zacher, a researcher with the progressive Analyst Institute, observes in a very interesting 2024 paper titled “The Polarization of the Rich: The New Democratic Allegiance of Affluent Americans and the Politics of Redistribution”:

 

Strikingly, in multiple elections since the 2010s, the data actually show a form of “backwards” polarization: majorities of affluent voters voted for Democratic candidates. Specifically, some evidence shows that Democratic candidates actually beat Republicans in attaining support from the top 5% (by income), the highest income stock- owning voters, and even the top 1% of voters (by income) over the past decade.

 

That being well-disposed toward welfare programs (to linger on an illuminating example) does not neatly follow income should not surprise you very much if you have thought through the issues a little bit. There are many possible factors at work. High-income African American voters, having the shared experience of racial discrimination, may be more oriented toward racial solidarity than class interest and may see their socioeconomic status as necessarily tied up with the shared interests of black Americans, who are more likely to rely on welfare programs than whites. (African Americans make up about 13 percent of the overall population but more than twice that share of SNAP beneficiaries, for example.) Similarly: For years, I have been chronicling the leftward political drift of Wall Street, and people who are surprised by the political loyalties of the men and women at the commanding heights of finance should consider that these voters are disproportionately products of the Ivy League and other elite universities, that they largely live and work in and around New York City and other major metros, and that they have a great deal politically in common with similarly situated voters who do not work in finance but who share experiences and interests with the Wall Street gang even if they occupy lower tax brackets. A related, albeit cynical, possibility is that affluent Americans of all backgrounds have an unarticulated but understood interest in giving the poor just enough to depress any more radical efforts at economic reorganization, in much the same way that many historians see the emergence of the Bismarckian welfare state as an essentially conservative program meant to take the steam out of the socialists with more far-reaching ambitions.

 

Whatever the reason, it is reasonably well-established that economic self-interest has very little reliable effect on voting or policy preferences. As the economist Bryan Caplan observes, “self-interest has little effect on public opinion.” Caplan is among those who believe that we would have better politics if voters were more self-interested because altruistic attitudes so often lead voters to support “foolish policies,” and he laments that the stereotypical, conspiracy-theory-adjacent view that our policymaking agenda is dominated by billionaires is—alas!—not quite true. Rather, there is broad agreement across income groups on many big policy questions, including the big economic ones, though the very wealthy do tend to prevail in those cases where they sharply disagree with the non-wealthy. In those cases, Caplan writes, “democracies listen to the relatively libertarian rich far more than they listen to the absolutely statist non-rich. And since I think that statist policy preferences rest on a long list of empirical and normative mistakes, my sincere reaction is to say, ‘Thank goodness.’”

 

In much the same way that Harvard-educated, Manhattan-dwelling Wall Street traders vote a lot like Harvard-educated, Manhattan-dwelling nonprofit executives, rural America has a fair number of export-dependent farmers who vote a lot like the clerk down at the feed-and-seed. Many of those farmers are multimillionaires with graduate degrees from Texas A&M who run sophisticated high-tech businesses and know a hell of a lot more about crop genomics than Bobby Kennedy Jr. does and a good deal more about practical Chinese politics than Marco Rubio does: They aren’t rubes—but they vote like rubes.

 

Well, I didn’t vote for an assault on American farmers! I didn’t vote for $6.59 diesel because I wanted to spend $320 to fill up my F-250. I didn’t vote for chaos! I didn’t vote for this! I hear that all the time. But the truth is, some 77 million Americans did vote precisely for this. Trump ran as a trade-war and tariffs guy. This is what a trade war looks like: It makes you poor and vulnerable. Trump’s low character was a matter of public record way back in the ancient days when the great big wall in our political discourse was the one running through Berlin. His profound ignorance, biliousness, and moral grotesquery long have been observable in American public life for anybody with enough money to buy a copy of the New York Post. Americans should have known better in 2016, but there’s no excuse for not having known better in 2024. Farmers voted for this just as much as Philadelphians have spent two generations or more voting for high crime and crappy schools and Angelenos have voted for ... well, go there and have a look around.

 

There are better ways to govern. We could begin with Caplan’s observation—which is unimpeachable—that Americans’ “policy preferences rest on a long list of empirical and normative mistakes,” e.g., that a country can get rich by blockading its own ports, literally bombing its own supply chains, having the state seize the means of production, and deporting a chunk of its workforce—and doing so because a pampered and half-literate New York City real estate heir thinks socks and building supplies aren’t expensive enough.

 

Yes, Americans voted for this: Farmers and car dealers and a whole lot of people who should have known better. The question is how much pain it is going to take for Americans to choose something better.

Wednesday, September 9, 2026

Trump’s Runaway Trade War

By Noah Rothman

Wednesday, September 09, 2026

 

The president’s advisers — senior White House officials and even “elected Republicans,” according to Axios, are throwing up their hands in frustration. “They no longer even try to persuade President Trump to do or not do something,” its Wednesday report read. “Why bother?” one asked. “What he wants,” another mused, “he gets.”

 

The deepening U.S. trade war with neighboring Canada is almost certainly one of those harebrained ideas that only makes sense to the president. On Tuesday night, Trump escalated his campaign of economic pressure on Ottawa by issuing a sweeping ban on imports of a variety of Canadian products. Americans will no longer have access to some Canadian dairy products, most alcoholic beverages, and all motorcycles. In addition, the U.S. imposed a 50 percent tariff on a range of other goods, ranging from “mattresses to motorboats.”

 

That’s not all. “Trump also moved to shut Canadian products out of large, long-term U.S. government contracts and directed the U.S. General Services Administration to declare Canadian products ineligible for those contracts until Canada allows “full and fair reciprocity″ for American products,” the Associated Press reported.

 

The Trump administration will contend that Canada started it. Ottawa has a protected market for dairy products and other key imports like soft lumber. The White House only wants an even playing field. Canada will also claim it’s the victim here. For over a decade, Canada’s liberal government has negotiated in good faith with the Trump administration over trade-related issues, but those deals aren’t worth the paper on which they’re printed. Both parties claim the other sabotaged the latest round of negotiations. Who is to say who is right?

 

That may not be a question most voters are interested in answering, given the acute threat to their pocketbooks. It’s true that the trade balance on the goods Trump targeted favors the United States. While the U.S. imports about $360 million in Canadian dairy products and roughly $900 million in alcohol, Canada imports more of both products from America. But the intangibles of statecraft may favor Canada in this conflict.

 

All evidence suggests that the Canadians are incensed by Trump’s trade aggression. They appear to be foursquare behind Carney, who owes his liberal government to Trump’s ham-fisted intervention into Canadian politics. Ottawa shows no signs of backing down, nor are there any indications that the Canadian people want him to sue for peace. The same could not be said for Trump.

 

An Ipsos poll released last week showed that just one-quarter of American adults believe Trump should take a firm hand with the Canadians. Seven in ten respondents, by contrast, want to see Washington compromise in its negotiations with its northern neighbor. Sixty percent oppose imposing new tariffs on Canada, compared with just 20 percent who do. While 12 percent blame Canada for the outbreak of hostilities and 18 percent say both countries are equally at fault, 46 percent say Trump is solely responsible for this unpopular contretemps.

 

That survey comes at a time when the public’s view of Trump’s economic policies is scraping the bottom of the barrel. Over the weekend, a survey sponsored by the Financial Times found that just one-third of registered voters approve of Trump’s economic record — a new low. Voters’ dim view of the president’s approach may be owed to what one CNN poll released in late July discovered. Then, only a meager 27 percent of American adults said Trump had the right priorities, while a “record-high” 73 percent said he had “not paid enough attention to the country’s most important problems.”

 

Sure, some dairy farmers, brewers, distillers, and motorcycle manufacturers will be thrilled with the news. And perhaps they are perfectly distributed constituencies that will, by virtue of their geography, make the difference in November’s vote. But that’s unlikely. More likely, Trump’s initiative pleases a few while angering a much larger host, and all while cementing the impression in the public’s head that he, like Joe Biden before him, neither understands nor cares much about the burdens associated with the rising cost of living in the United States.

 

If the Republican Party could have talked Trump out of it, they would have. The president is a runaway train now. And the GOP is just along for the ride.

Wednesday, August 26, 2026

Trump’s Trade War With Canada Is Not About Canada

By Kevin D. Williamson

Wednesday, August 26, 2026

 

The leaders in Iran will agree to nothing. The leaders in Canada could agree to anything—and it would not be enough. What should be understood is that the latter is, to some considerable degree, a consequence of the former.

 

Poor Canada has been geopolitically upgraded from afterthought to distraction—our polite friends to the north were better off when we U.S.A.-type Americans had forgotten they were there.

 

In trade as in most things, the Canadians have been nothing if not agreeable: They agreed to NAFTA, they agreed to NAFTA’s reworking as the U.S.-Mexico-Canada Agreement, just as they had agreed to the Reciprocity Treaty of 1854 and the Canada-U.S. Reciprocal Trade Agreements of 1935 and 1938, and the Canada-U.S. Free Trade Agreement of 1989.

 

That’s a lot of agreement. The Canadians probably would agree to a good deal more if Donald Trump and his clown car of an administration were to put a serious deal on the table in front of them, but there is no such proposal. Prime Minister Mark Carney was right to walk away from “negotiations” with the United States because there were no genuine negotiations under way: Canada is simply a punching bag for the Trump administration, a prop used to gin up a couple of days’ worth of headlines when a distraction—from Iran—is desired by the retired game-show host and quondam pornographer who has been, incredibly enough, twice elected president of these United States.

 

The notion that the United States is being victimized by trade with Canada is so insipid and so imbecilic that one almost feels degraded by explaining it, if only because such an explanation implicitly takes seriously the premise that Trump et al. take the premise seriously.

 

But here goes:

 

The United States does have a substantial trade deficit with Canada, for which the United States ought to be grateful, inasmuch as that deficit is mainly driven by Canada’s export of discounted crude oil to U.S. refineries, without which the price of gasoline and diesel—and everything that is moved, processed, or stored with the use of petroleum products—would be even higher than it is right now. (Diesel is damned near $6 a gallon at my local.) Canadian producers sell their oil at a discount to U.S. buyers for a couple of reasons: 1) Canadian pipelines mostly run north-south rather than east-west, and the only potential buyer north of Canada is Santa Claus; 2) Canadian oil is sulfurous, sludgy stuff, and there are not many refineries outside of the United States set up to efficiently handle that kind of crude.

 

It takes a special kind of stupid to believe that Canada is victimizing Americans by selling us oil at below-market rates. The case is closer to the opposite: Americans buy Canadian oil on sale because Canadian producers would have a hard time getting market rates for their oil from buyers in Europe or Asia. Crude oil is not an entirely undifferentiated commodity, and transporting the stuff is a major factor in the market. Canada desperately needs investment in its energy-export infrastructure but, alas, it is as difficult to build a pipeline there as it is in the United States, and so Canadian producers remain largely captive to the U.S. market—however fickle and abusive a trade partner the United States may prove to be.

 

The more meaningful points of trade friction between Canada and the United States are relatively minor and mostly parochial: Canadian and U.S. timber producers work under different pricing structures because most Canadian production happens on public land while most U.S. production happens on private land, and U.S. producers complain that the Canadian government should make it more expensive for Canadian producers to operate, because Americans who want to buy wood-framed houses simply must be protected from lower prices. Canada does maintain a very stupid regime of dairy protectionism that should be reformed—as, indeed, does the United States, which keeps milk prices artificially high in the U.S. market through the usual methods of government controls and trade restrictions.

 

I do not enjoy writing this, but: None of the preceding 384 words really matters. The current U.S.-Canada trade drama is not about U.S.-Canada trade: It is about the Trump administration’s amazing feat of compressing about 80 percent of the political experience of the Vietnam War into a few months, packing in all of the defeat and humiliation but sparing Americans—for now, at least—the draft and the body bags.

 

The world is laughing at Scott Bessent, and only in part for his greatest personal faux pas, i.e., being Scott Bessent. The proximate cause of today’s laughter is that, having announced an “economic D-Day” targeting Iran, the Trump administration has announced a program amounting to—as predicted in this space—approximately squat. Tehran’s economic lifeline is held by Xi Jinping, with China consuming about 80 percent of Iranian petroleum exports. A regime of “secondary sanctions”—meaning applying economic sanctions to those countries whose governments decline to enforce American sanctions on Washington’s behalf—would mean a direct and ugly economic confrontation with Beijing. It is worth remembering that China ran circles around the Trump administration the last time the incompetents and amateurs in the dopey red caps tried that, with Beijing using the threat of withholding rare-earth minerals to force Trump to cry whatever is Mandarin for “Uncle!” in about two minutes.

 

Trump does not have a free hand to beat on Iran because he does not have a free hand to beat on China. But beating on Canada is a low-risk proposition.

 

The Canadians might, someday, wish to do something about that.

Tuesday, August 25, 2026

The Pointless Trade War with Canada

National Review Online

Tuesday, August 25, 2026

 

Handling China, Russia, or the EU will always be tricky. Mistakes and missteps on our part are, of course, undesirable, but given the complex issues involved, probably unavoidable. However, for the U.S. to be in the middle of a poisonous brawl with Canada (Canada!) takes a degree of foolhardiness that would once have been inconceivable.

 

President Trump’s tariff plans were always going to anger Canada, but persisting with “jokes” about the “51st state” made things worse. They helped insert a turbocharged Canadian nationalism into tariff negotiations and ensured the election of Mark Carney, a Davos-Canadian with an agenda all his own as Canada’s prime minister.

 

NAFTA was a good deal for the U.S. Its successor, USMCA, wisely kept most of it intact while adding some needed updates and unneeded protectionism. Trump described it at the time as the “largest, most significant, modern, and balanced trade agreement in history.” Once reelected, Trump wanted more, but, from his opening salvos onward, he has made reworking our trading relationship with Canada much more difficult than it needed to be.

 

The latest tariff standoff with Ottawa was triggered by the administration retaliating against Canadian retaliation (trade fights are like that) at federal and provincial levels, for earlier U.S. tariffs and the insults that preceded them. The White House claimed the power to do so under Section 338 of the 1930 Tariff Act, an act, as we have observed before, better known as Smoot–Hawley, a familiar name to students of the Great Depression. Section 338, which allows the president to impose tariffs up to 50 percent under certain conditions, had lain dormant for the better part of a century. Its survival is, to repeat ourselves again, a reminder of the value of sunset clauses.

 

Trump had given Ottawa a deadline to come to a deal covering various disputed areas in order to avoid tariffs on $20 billion of goods. Despite the two sides reportedly coming close to an agreement, the deadline was missed (each side is blaming the other). The new tariffs have come into force. Canada’s Carney has said that Canada will retaliate dollar-for-dollar starting September 8, with tariffs affecting a wide range of goods from dairy products to electronics. Trump has now announced on Truth Social (why bother with Congress?) that from January 1, yet more tariffs will be imposed: “Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%.”

 

Using wording clearly intended to refresh memories of earlier insults, Trump added that “Canada will be treated like a State no longer!” He also referred to Canada’s trade surplus of $60 billion with the U.S., a surplus more than accounted for by U.S. imports of $90 billion worth of crude oil. As was noted by the editors of the Wall Street Journal, Canadian heavy crude is particularly well-suited to U.S. refineries. Exclude it, and “U.S. refineries would also operate at lower capacity.” Is that in our interest?

 

As is so often the case, tariffs will inflict economic damage on both sides of the border. U.S. manufacturers will take a hit, not least because anticipated cuts to tariffs on steel and aluminum will not now take place. Trump’s new tariff hikes will also have a direct impact on the prices of a range of consumer goods, unwelcome news for those who have to pay them and for the Republican candidates who will be asking for their votes in a few weeks.

 

The geopolitical consequences may also be serious. In an age of anxiety over supply chains, creating a cohesive North American bloc makes sense. As Carney remarked recently, Canada supplies 99 percent of all U.S. natural gas imports, 85 percent of its electricity imports, and 60 percent of its crude oil imports. But the U.S. is constantly moving in the opposite direction. It recently exercised its right to reject automatic renewal of the USMCA, setting the stage for an annual battle over its terms with our northern and southern neighbors. Meanwhile, Canada is looking to become less dependent on the U.S., with measures that may include the construction of an oil pipeline that would make it easier to supply Asian buyers.

 

The way that the administration is behaving toward Canada, an old friend, cannot fail to alarm other American allies. Referring to Canada’s trading agreements with the U.S., Carney commented that sometimes the Americans’ “signature was written in pencil,” a remark that will inevitably raise questions about the reliability of the U.S. in other policy areas too, not least defense.

 

Clearly, the U.S. and Canada need to resolve this crisis as soon as possible, a task that will be made more difficult by the likelihood of public anger in Canada over any significant concessions. But even when this has been accomplished, the damage done to one of this country’s greatest assets, its close friendship with its resource-rich and strategically located northern neighbor, is going to take a long time to repair.

 

And for what?

Trump Launches Another (Trade) War

By Jeffrey Blehar

Tuesday, August 25, 2026

 

I think my friend Erick Erickson summed it up best: As you read this, there are 69 days remaining until the November midterms. The economy and all that pertains to it — the rapidly increasing cost of living, tariff-based inflation, and Trump’s seeming indifference to all of this — is the No. 1 focus among voters. As a secondary matter, voters are concerned about the Iran war — but again, mostly because of its visible effects on the price at the pump.

 

And Donald Trump has decided to go back to banging the drum about a trade war with Canada, again. According to the New York Times:

 

President Trump threatened on Monday to increase tariffs on all cars, trucks, car parts and steel from Canada to 50 percent, starting Jan. 1, as the relationship with America’s closest traditional ally morphs into a full-blown trade war.

 

Writing on Truth Social, the president said that Canada was “among the worst Nations in the World to deal with” and that it “will be treated like a State no longer.”

 

“They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US!” he wrote.

 

Ho-hum, another threatened trade war. “Canada wants the benefits of being a State, without being one!!!” Trump added later, just to make sure nobody had forgotten about his threat back in 2025 to annex the entire country. This all arises from the breakdown of trade talks between the United States and its neighbor to the north; Canada is not feeling particularly responsive toward Trump’s demands that it do things like eliminate French-language labeling requirements or sacrifice national sovereignty to Trump’s whims after being hit with 25 percent tariffs on most of their industrial products (steel, aluminum, lumber, etc.) back in 2025.

 

Of course, Trump’s theory of “national sovereignty” needs little elaboration at this point: In his opinion, it is something that belongs solely to the United States, particularly when Trump is running it. Hence his otherwise mystifying fixation on Canada’s status as a nation-state — he dismisses it as puny in order to inflate his own ego. Meanwhile, prices will go up as precious time is wasted in the remaining months before the election. (If it’s any consolation, it’s probably already too late.)

 

Really, I just think Trump needs, on some fundamental psychological level, to “master and dominate” situations and people — look at the man’s hiring principles for confirmation of this theory — and Canada offers him an alternate outlet to Iran for these impulses on the international stage, at least a more satisfyingly responsive one. (It remains to be seen whether they are equally intractable.)

 

America’s Ranchers Are Now Beefing with Trump

 

A brief note on futility. As the price of nearly everything continues to rise during Trump’s second term, one item he has kept a particular eye on is the price of beef. And for once this one is not really Trump’s fault. The rising price of beef is due not to tariffs or trade wars, but to the rules of supply and demand. Where’s the beef, you ask? Turns out we just don’t have enough of it.

 

Prolonged drought conditions in America’s stock-breeding states (e.g., the Great Plains and Texas) over the last several years have quietly shrunk our nation’s cattle herds. Restoring them to a healthier size will inevitably bring down the price of your hamburger — but not for a couple of years, when those new steers have finally grown old enough to bring to market.

 

In the meantime, Trump is willing to try anything in order to lower the price before the election. And he has hit upon the idea of using the only tool he knows how to wield — tariffs — in reverse: by temporarily offering relief from preexisting tariffs to foreign beef producers, an anticipated 300,000 metric tons of it.

 

Naturally, America’s farmers and ranchers are howling about this. They can stick a sock in it as far as I’m concerned, because Trump’s suspending foreign beef tariffs is like his extending the waiver of the Jones Act: a nice start, but let’s abolish the whole thing entirely. Of course, Trump would never get rid of something as beautiful as a tariff permanently — you might as well ask a jeweler to flush his diamonds down the toilet.

 

Not that it will do any good in lowering prices. For all his bravado and bluster, Trump sometimes reminds me of an incompetent version of the little Dutch boy from the old Hans Brinker story — desperately seeking to plug leaking holes in the economy with his stubby fingers, facing increasing pressure from behind, and running out of hands.

 

Harry and Meghan Are Finally Run Out of America on a Rail

 

Finally (and because the Carnival of Fools has taken such a dour turn as of late), I wanted to end on some redemptive, uplifting news: England’s useless residual royal Prince Harry has officially decided to decamp from America’s shores along with his socially climbing bride Meghan Markle, to return in shame to Great Britain. It would be nice to tell you that Trump and ICE were behind it — now that would have positively affected the November midterms — but the simple truth is that they deported themselves, because nobody wanted them around.

 

Harry and Meghan, who flamboyantly broke with the royal family in a whiny public feud six years ago and moved to Santa Barbara, had high hopes of leveraging America’s fascination with the British royals into an easy jet-set lifestyle as West Coast celebrities. What they hadn’t counted on was the unavoidable reality that (1) he’s a whimpering simpleton without a single interesting quality, and (2) she has the charisma and personal warmth of a dull but demanding pit viper. Together they made a great team. (Markle’s podcasting career has, curiously, failed to take flight. Apparently, people just aren’t that interested in listening to the co-star of Suits talk to various cosmetics CEOs about their lives.)

 

It’s helpful to remember exactly why Harry and Meghan left England in the first place: Harry claimed that the media coverage of his marriage was intolerable and that his family had acted like racist bullies toward his beloved bride. (Markle, at the time: “I just didn’t want to be alive anymore.”) It looks like they have suddenly found the will to live! Alas, a shame it had to come just at the moment England has been relegated to the minor leagues as a global power.

Saturday, July 18, 2026

Sink the Hormuz Tollbooth

By Judson Berger

Friday, July 18, 2026

 

Now that President Trump has backed down from momentarily threatening to toll the Strait of Hormuz, it’s worth emphasizing how crucial it is to sink the idea for good.

 

Secretary of State Marco Rubio was right when he warned last month that letting Iran or any other country treat international waterways as theirs to toll would create “chaos” and that “no country on earth has a right to charge for the use” of them. He warned that such a practice could catch on “like a contagion.”

 

Rather than put that principle in writing, Trump initially agreed to language in the original MOU that fell short of reaffirming freedom of navigation in the strait, as Rich Lowry recounts. The president then compounded that error by floating our own 20 percent fee on shipping, amid the collapse of the MOU in response to Iran’s attacks — only to reverse course, saying he’d strike trade and investment deals with Gulf nations instead.

 

Trump’s threat, to put it mildly, had no teeth. Andy McCarthy provides a reminder of “rudimentary constitutional facts” — as well as general U.S. recognition of free-transit principles in the United Nations Convention on the Law of the Sea — that prohibited Trump from taking it any further. He cautions that were Trump to carry it out, this “would induce other nations to extort payments for transit through international waters and straits of importance to international trade where they are in a position to intimidate shippers”:

 

Free trade would break down, which would be a catastrophe for nations heavily engaged in international trade, such as our own.

 

The problem is that by even considering (or pretending to consider) a toll, Trump kept the precedent that Iran is trying to set on life support, when he should be pulling the plug — not only by using military and diplomatic force to compel Tehran to abandon the plan, but by affirming and operating according to the principle of freedom of navigation.

 

Indeed, Iranian Foreign Minister Abbas Araghchi taunted the U.S. in response by saying Trump is “right” that “whoever provides secure and safe passage of commercial vessels through the Strait of Hormuz should be compensated for this service,” that 20 percent is too much, and that “we will be fair.”

 

In other words, Iran maintains that strait-tolling is legitimate and hopes to exploit the Trump administration’s fee-flirtation to reinforce its position.

 

National Review’s editorial urges Washington to adhere to and promote Rubio’s view, in part to attract allies in pursuit of the goal of free transit: “That is the argument the U.S. should be making — and enforcing.” As Leonardo Bernard, with the Australian National Centre for Ocean Resources and Security, recently wrote, allowing a fee-based precedent to be established would drive up consumer prices and destabilize waterways, though international resistance would likely remain strong and resulting increased shipping costs could incentivize alternative routes.

 

All the more reason for America — and all nations — to keep tollbooths confined to the turnpikes where they belong.

Friday, June 19, 2026

Don’t Give Up on Global Order

By Philip H. Gordon

Tuesday, June 09, 2026

  

Americans these days agree on very little about politics and international relations. But there is a growing consensus around two fundamental points. One is that the long-standing liberal world order—founded after World War II and based on a system of U.S.-led alliances, multilateral institutions, relatively open trade, and the defense of rules and norms such as state sovereignty, nonaggression, and freedom of navigation—is now dead and buried. It had been waning for some time, the logic goes, but the second Trump administration is proving to be the final nail in the coffin. The second point of emerging consensus is that a fundamental remaking of that order has become essential. The American role in preserving the old order had become counterproductive and unsustainable, and it is long past time that Americans shed the burdens required to try to maintain it.

 

The problem with this line of thinking is that neither assertion is true, and assuming otherwise could create a dangerous, self-fulfilling prophecy. U.S. President Donald Trump certainly doesn’t believe in a liberal, rules-based, U.S.-led order, and there is no guarantee that order will survive four years of the damage his administration is inflicting on it. At the same time, it would be premature to succumb to the fatalistic conclusion that there is no hope for more principled and reliable U.S. leadership after Trump, whose policies are now reminding many Americans what they lose when such leadership is abandoned. It would be even more misguided to presume that if the U.S.-led world order really is dying, it won’t be sorely missed when it is gone. To paraphrase what British Prime Minister Winston Churchill once said about democracy, a U.S.-led world order is probably the worst of all possible orders—except for all the others that have ever been tried.

 

Cynics (or frankly any honest observer) might question the degree to which a liberal rules-based order ever actually existed; it would be easy to make a long list of examples of how rules have been bent, broken, or ignored, not least by the United States itself. As Canadian Prime Minister Mark Carney acknowledged in his landmark address to the World Economic Forum in Davos in January 2026, the notion of a rules-based order was always “partially false.” The world’s strongest powers would consistently “exempt themselves when convenient,” trade rules were “enforced asymmetrically,” and international law was “applied with varying rigor depending on the identity of the accused or the victim.” At the same time, as Carney also acknowledged, the liberal international order was also partially true, and for eight decades, American hegemony “helped provide public goods, open sea lanes, a stable financial system, collective security, and support for frameworks for resolving disputes.” The United States during that period adopted and maintained a broad, enlightened view—historically unprecedented among great powers—that it had a national self-interest in making other countries secure, prosperous, and free. That view in turn gave other countries an interest in supporting U.S. leadership and the order that came with it.

 

The U.S.-led international system that has been in place since just after World War II has been marred by wars, injustices, inequalities, and other horrors. But it has also underpinned the most stable, secure, and prosperous 80-year period in world history. Much of that is because every U.S. president before Trump believed in it, defended it, and had the necessary public support to do so. Rather than complacently accepting its demise—let alone celebrating or contributing to it—the American president who comes after Trump should set out to update, improve, and sell the idea of an enlightened and U.S.-led world where leadership, rules, values, institutions, and norms still matter.

Top of Form

 

Bottom of Form

SILVER LININGS

 

In the 1979 film Monty Python’s Life of Brian, set in AD 33, the character Reg (played by the comedian John Cleese) famously asks fellow members of his Judean resistance group, “What have the Romans ever done for us?,” only for them to mention aqueducts, sanitation, roads, irrigation, medicine, education, public order, and even wine. Reg is reduced to responding, “Apart from the sanitation, the medicine, education, . . . what have the Romans ever done for us?” A similar joke could be made about American critics who dismiss the benefits of U.S. global leadership over the past 80 years: apart from avoiding great-power war (for the first time in history), keeping sea-lanes open, curbing nuclear proliferation, fostering unparalleled prosperity, advancing democracy, and granting the United States the unique benefits of global preeminence, what did the U.S.-led order ever do for Americans?

 

To say this is not to ignore the conflicts, injustices, and hypocrisies of the past eight decades but to note how favorably that period compares with any previous one in world history. Consider, for example, the prevention of wars between major powers. In the 80 years that preceded 1945 or any similar period before that, the world’s strongest countries fought regularly and repeatedly, wreaking havoc on humanity. World War I and World War II alone killed roughly 100 million people. By this standard, the last 80 years compare rather favorably. To be sure, what the historian John Lewis Gaddis has called “the long peace” that followed World War II was due in part to the deterrent effect of nuclear weapons, whose invention coincided with the dawn of the U.S.-led world order. As the political scientist John Mueller has pointed out, it was also due to the simple reality that modern military technology, even beyond nuclear weapons, makes war so catastrophic that major powers are largely deterred from waging it against each other. But much of the long peace also had to do with the presence and power of American military forces, alliances, and defense agreements all over the world, which have deterred the sort of territorial aggression and great-power wars that used to be commonplace.

 

Nuclear weapons nonproliferation provides another case in point. U.S. President John F. Kennedy’s famous 1963 warning that the world could see some 15 to 25 nuclear states by the 1970s—a thought that “haunted” him—was hardly implausible. Many experts and intelligence services concurred. But it didn’t happen, not because nuclear know-how, material, or technology was not available to states but because the United States gave credible security guarantees to many of the states that might have considered that option and set up multilateral institutions to deny access to adversarial potential proliferators. The system was far from perfect—five countries developed nuclear weapons after Kennedy’s warning—but others were deterred from or incentivized against doing so. More nuclear weapons proliferation will not necessarily lead to nuclear weapons use, accidents, or terrorist threats, but it does not seem to be a gamble worth taking.

 

The liberal international order—anchored by American security guarantees that provided stability for large parts of Europe and Asia, open sea-lanes for the entire world, and U.S.-led institutions such as the International Monetary Fund, the World Bank, and the World Trade Organization—also helped to foster the largest expansion of global prosperity in history. Critics may claim that the U.S.-led order benefited only the United States and other advanced industrial countries, and that economic growth was unevenly distributed among and within countries. But from 1945 to today, global GDP increased more than tenfold, thanks in no small part to rising levels of wealth in so-called developing countries. Average incomes tripled, and the share of humanity living in extreme poverty fell from nearly 60 percent in 1950 to around ten percent in 2025. The rise in global income lifted over a billion people out of poverty altogether, and the global middle class grew to include more than half the world’s population. Life expectancy rose from 46 years in 1950 to 73 years in 2024. This economic growth cannot be solely attributed to the U.S.-led world order. But that order did provide unusually propitious conditions for it to take place.

 

American global leadership also helped promote the greatest expansion of individual freedom and democracy the world has ever seen. In 1945, most of the world lived under authoritarian rule. By the 1990s, more than half of all states were democracies; by 2016 it was six out of ten. Even with the democratic recession of the past decade, the world remains far more democratic than in any previous era. The United States often wielded its great power selfishly, but it nonetheless provided a model and the space for promoting open societies, rule of law, and human rights far beyond anything before.

 

NOT DEAD YET

 

Some critics of the U.S.-led order might grant that it has been great for the world. But they believe it has been an unsustainable drain on American resources. Trump, for example, framed his campaign for president in 2024 on a narrative of U.S. weakness and global decline, and many voters seemed to believe him. According to a February 2024 Gallup poll, just 33 percent of Americans were satisfied with the position of the United States in the world—a decrease of 20 percentage points from just four years prior. Many Americans feel the United States has not been well served by the international system that preceded Trump and have become convinced that the country is no longer capable of playing a global leadership role.

 

But neither of these assumptions hold up to scrutiny. U.S. economic growth over the past two decades has dwarfed that of other wealthy countries, and the economy that Trump inherited was what The Economist in October 2024 called “the envy of the world.” Whereas in 2008 the European Union’s economy was larger than that of the United States, U.S. GDP is now more than 40 percent higher than that of the EU and more than seven times that of Japan. Once common predictions that China would soon surpass the United States economically have largely ceased as Beijing’s decades-long trend of double-digit growth has ended and its economy faces demographic challenges, weak consumption, and a bloated property market. Russia’s already much weaker economy has been devastated by sanctions, export controls, and over four years of war—to the point that the U.S. defense budget alone is now half the size of Russia’s entire GDP. The United States obviously faces real economic problems—particularly growing inequality and rising debt—but it still accounts for 26 percent of global GDP, the highest share in nearly two decades and about where it stood at the end of the Reagan administration.

 

Other measures of relative power underscore Washington’s global strength. U.S. military power eclipses that of any other country, with a defense budget more than three times China’s and larger than the top ten other biggest spenders’ combined. U.S. energy production has reached a record high: Washington leads global production of both oil and natural gas, at 20 percent and 25 percent, respectively. American technology companies dominate global markets and far outcompete rivals in the field of artificial intelligence. The U.S. dollar is used in nearly 90 percent of foreign exchange transactions and makes up 60 percent of foreign exchange reserves, which gives Washington broad power to impose sanctions, freeze assets, and run deficits.

 

The United States still faces considerable domestic and international challenges, and Trump’s policies—not least his inflationary tariffs, cuts to top research institutions, indiscriminate restrictions on immigration, and weakening of democratic norms and the rule of law—are doing serious damage to the sources of its strength. But the notion that the United States is no longer capable of playing a global leadership role or that its exercise of such a role for the past 80 years has not served it well is not backed up by the facts.

 

WORTH THE RISK?

 

As Americans have grown tired of their global role, the track record and consequences of the U.S.-led order have been harshly and increasingly criticized from both sides of the political spectrum. The right, once internationalist but now dominated by Trump loyalists and “America first” proponents, believes that American foreign policy elites have squandered vast amounts of blood and treasure in search of “permanent American domination of the entire world,” as the 2025 National Security Strategy put it. In contrast to postwar American leaders such as President Harry Truman or Secretaries of State Dean Acheson and George Marshall, Trump sees the world in zero-sum terms. He has little appreciation for concepts such as public goods or the global commons. He sees alliances not as force multipliers but as mechanisms for allies to exploit the United States, and he harbors nothing but disdain for multilateral institutions, rules, laws, or norms.

 

On the left is a different but overlapping critique: that the history of the U.S.-led world order has been one of an unnecessary quest for domination, excessive defense spending, failed military interventions, hypocrisy, and the neglect of human rights. Many progressives recognize the challenges posed by various U.S. adversaries but often blame American policies and provocations as much as the adversaries themselves. They note that high U.S. defense expenditures incentivized allies’ free-riding and came at the expense of American workers, and that U.S. bases abroad provided targets for Washington’s enemies as much as they deterred them. These critics question the United States’ capacity for responsible global leadership and oppose the defense spending that leadership requires.

 

There are of course huge differences between (and within) these two schools of thought. But what they have in common is that neither believes the U.S.-led liberal order is in the United States’ continued interest. They also tend to take the benefits of U.S. leadership for granted and fail to recognize the dangers that would loom if Americans gave up on it.

 

The biggest risk in a world without a strong United States committed to allies, rules, and norms would be a lower cost of aggression and a higher risk of major conflict as a result. As Russia’s 2022 invasion of Ukraine showed, outright territorial conquest is hardly extinct, and it would be naive to conclude that ambitious or insecure states would not seek to take advantage of a withering of American military power and security commitments. Trump likes to brag about (and overstate) how he persuaded NATO allies to spend more on defense. But if the U.S. defense commitment is made conditional and U.S. forces deployed in Europe are reduced, the continent as a whole will be less secure, and Russia could be tempted to think it could get away with further aggression beyond Ukraine. If U.S. security commitments in the Indo-Pacific are no longer backed by credible military forces, deterrence for Japan, South Korea, and Taiwan could fail. Trump’s war of choice in Iran was reckless and irresponsible, but if the United States withdrew its forces from the Middle East and left its rivals to their own devices, nothing in history suggests these states would just get along peacefully or that the United States would be immune to the consequences if they didn’t.

 

Also at risk would be critical public goods such as open sea-lanes, which have been taken for granted since the United States embraced the principle of freedom of navigation after World War II and built up its navy to enforce it. Skeptics of that role were given a sharp reminder of its importance when Iran responded to U.S. attacks in February 2026 by closing the Strait of Hormuz, sending fuel and other commodity prices skyrocketing. For more than 40 years, U.S. forces in the region had successfully deterred an Iranian closure of the strait—even in periods of conflict—until Trump launched a war that left the regime with little to lose. In a matter of weeks, American gas prices rose by 50 percent, some Asian countries had to move to four-day workweeks because of lack of fuel, farmers in Africa and other regions didn’t have fertilizer for spring planting, and rising inflation and interest rates put the entire global economy at risk. If the United States were now to give up on the principle of freedom of navigation or the means to enforce it, other key waterways—including the Strait of Malacca, the South China Sea, and the Suez Canal—would be vulnerable either to adversarial domination or conflict among competing powers. To the argument that such a role is too costly for the United States to maintain, consider that a one percent reduction in U.S. GDP, which could easily result from the closure of any of these key waterways, would cost Americans over $300 billion in a year. A similar blow to the global economy would cost over $10 trillion.

 

Nor can it be assumed that Kennedy’s nightmare of further nuclear proliferation could be avoided. Indeed, mounting questions about continued U.S. security commitments may have already set the stage for such an expansion. Over 75 percent of South Koreans now support the development of an independent arsenal. Polish President Karol Nawrocki has suggested that his country develop its own nuclear weapons, and Germany is pursuing nuclear cooperation with France and the United Kingdom. Saudi Crown Prince Mohammed bin Salman, whose country signed a comprehensive defense agreement with nuclear-armed Pakistan in September 2025, has said since 2018 that his country would develop its own nuclear weapons “as soon as possible” if Iran did so, and the Turkish foreign minister said in February of this year that Turkey and others in the region would consider doing so as well. Even Japan—the world’s only victim of nuclear weapons use so far—is starting to debate the need for an independent nuclear deterrent. The Trump administration’s mishandling of its war in Iran does not negate the reality that without the U.S. capacity to prevent it from doing so, the Islamic Republic might have produced nuclear weapons a long time ago.

 

Critics of the U.S.-led order tend to downplay or wish away all these risks, hoping that if Washington reduced its role, others would step up to fill the gap. Some think that countries would start recognizing great powers’ spheres of influence and, in doing so, avoid conflict. But in truth, there is no replacement for what the United States provides. By taking relative peace, prosperity, and stability for granted and focusing solely on the costs of U.S. leadership rather than the benefits, these critics are setting aside many of the lessons of the past century and proposing an extraordinary gamble that those lessons no longer apply.

 

DON’T NIX IT, FIX IT

 

There is no guarantee that the U.S.-led order will survive Trump, who is taking a sledgehammer to almost all its core pillars and comprehensively destroying the institutions, principles, and the trust in the United States on which it depends. Trump reflects American attitudes as much as he drives them, and after seeing him elected twice, no one can claim that Trumpism is a passing phenomenon. As Mara Karlin and I wrote in Foreign Affairs earlier this year, Washington’s allies would be irresponsible not to start urgently preparing for a world in which responsible U.S. leadership never returns, and Americans who believe in such global leadership are in no position to promise it ever will.

 

But Americans do not have to take that future as a given. Instead of fatalistically accepting the premise that the U.S.-led order is dead and cannot be revived, the next president should remind Americans of its value, acknowledge its shortcomings, and offer a new vision for American leadership. The United States after Trump should seek to reform the U.S.-led world order, not retreat from the responsibilities of maintaining it.

 

The first step in this process would be to propose a new bargain with allies. To address legitimate concerns that the old alliance system placed unfair burdens on the United States, a new arrangement will have to include greater contributions from allies, both to deal with growing threats and to make alliances politically sustainable in Washington. Fortunately, the process of greater burden sharing is already underway and likely to continue. Even if the next U.S. administration believes strongly in the value of the United States’ partnerships, American allies will know that a potential return to a Trumpist foreign policy is just one election away. That, after all, is what American officials warned their allies for years as they pressed for greater burden sharing. Now, these countries have all too much reason to believe it.

 

A renewed U.S. alliance system will also have to be updated to reflect the most likely global challenges of the second quarter of the twenty-first century. These include great-power competition with China and Russia, growing cooperation among those powers and other adversaries such as Iran and North Korea, the emergence of artificial general intelligence, the need to create more resilience in supply chains and the U.S. defense industrial base, and the impacts of climate change. To do that, and to increase linkages between U.S. allies in different regions, the G-7 could be expanded to include partners such as Australia and South Korea and given a mandate to include national security–related export controls, outbound investment restrictions, and collective responses to economic coercion. A new American president who recommits the United States to the ironclad security guarantees that have helped deter aggression for decades, and who once again treats allies with trust and respect, would likely be welcomed enthusiastically as the leader of this modernized alliance.

 

The next U.S. president will also have to demonstrate respect for the rules, norms, and institutions that Trump is destroying. The notion that previous American leaders abided by such rules may well have been partially false, but no previous president came anywhere close to the degree of domestic or international lawlessness Trump is displaying. All great powers will be inclined to use the international system to their advantage, and no multilateral system will ever be robust enough to ensure comprehensive respect for all international rules and laws. But comprehensively eschewing institutions, rules, international law, and norms altogether in a world of “might makes right” is a recipe for injustice and renewed conflict among great powers.

 

A renewed U.S.-led world order will have to address the global economic imbalances and inequities that contributed so much to the fading support for the old one. It will not be possible to go back to a world where globalization and free trade agreements were touted as the path to prosperity for all without recognition of their downsides—such as trade imbalances with China and the decline in American manufacturing jobs in certain communities. But it will also be necessary to pull back from the overcorrection that has taken place over the past decade—and especially during the second Trump term—in which the very word “trade” became a sort of taboo and huge increases in U.S. tariffs interfered with trade flows, raised prices for consumers, failed to restore manufacturing jobs, reduced farmers’ incomes, and created enormous economic uncertainty while leaving the country’s overall trade deficit virtually unchanged. The next president will have to be honest with the American people, explaining that tariffs are a mostly regressive tax on Americans; productivity gains and technology advances are far more responsible than trade for the decades-long decline in the U.S. manufacturing sector; the greatest beneficiaries of lower-cost imports are lower-income families; reducing barriers to trade and opening up new markets can create good, high-paying jobs for Americans; and protectionism and tit-for-tat tariff wars are more likely to be a path to 1930s-style economic stagnation than to the massive expansion of U.S. and global prosperity seen during the post–World War II era.

 

To the extent that reform of the World Trade Organization and other institutions proves impossible, the next president should look to develop new, flexible, and overlapping partnerships among like-minded states. Such groupings could agree to use their collective leverage (the current G-7 countries alone represent some 750 million people and $55 trillion in GDP) to deal with issues such as global supply chain vulnerabilities, China’s predatory trade practices, and economic coercion in general. Such an approach would make a lot more sense than putting up trade barriers within such groupings and allowing China to play their members off one another. The United States should also be prepared to explore bilateral and regional trade agreements that would not only lower trade and investment barriers but also include enforceable standards on labor rights, state subsidies, and environmental protection. By boosting exports and making imports cheaper, such agreements would both contribute to an overall rise in U.S. living standards and generate revenues that could be used for worker transition assistance, training and “upskilling,” and investments in local communities negatively affected by trade. Indeed, formally linking commitments to make such investments to the trade deals themselves would boost domestic political support for these types of agreements.

 

The next administration must also recognize the American public’s frustration with the burdens of global leadership and forever wars by exercising greater humility and discretion in the wielding of American military power—and allowing Congress to play its constitutional role. Most of the problems with the past order were not about global military engagement or presence but excess and overreach. The United States does need to deter China, Iran, North Korea, and Russia; it did not need to spend $4 trillion over 20 years and sacrifice countless lives to try to turn Afghanistan and Iraq into pro-American democracies. The United States did need to build and maintain a global coalition to help save Ukraine from occupation and reinforce the principle of nonaggression; it did not need to launch a unilateral war of choice to try to accomplish regime change in Iran when diplomatic alternatives were available. Of course, no administration can always exercise appropriate wisdom in the face of hard foreign policy challenges, but forgoing the capability to defend the international order is a recipe for disaster that Americans would come to regret.

 

STILL AT THE READY

 

Americans who are worried about the domestic political consequences of defending U.S. global leadership might admit that U.S. leadership makes sense substantively but is not politically viable because they are tired of the burdens it requires of them and the perceived lack of results. This is what Trump’s second election was widely understood to suggest. Less than two years into his term, however, the results of his unilateral, transactional, and values-free policies are backfiring. He is the least popular president ever at this point in his tenure, and polls now show American support for alliances and international engagement at an all-time high. According to a Gallup poll conducted in early February 2026, 64 percent of Americans think the United States should play a major or leading role in solving international problems, and the same percentage believes it’s important for the United States to be the world’s leading military superpower. An NPR/Ipsos poll from January 2026 found that 61 percent of Americans believe the United States should be the moral leader of the world (though only 39 percent believe it actually is). And a July 2025 Chicago Council on Global Affairs survey found that eight in ten Americans believe that international trade benefits the United States and free trade agreements effectively advance U.S. foreign policy goals. By the time Trump’s presidency ends, in 2029, the case for supporting an updated vision of an American-led world order may be more compelling than it has been in years.

 

Critics might argue that too much damage will have been done for the United States’ allies—having been “fooled twice”—to believe any new American commitments to global engagement, deterrence, institutions, or rules. In fact, even after all that has transpired since January 2025, or perhaps because of it, allies around the world would likely embrace a new form of U.S. leadership with open arms. It is Washington’s adversaries who would not.

 

After World War II, American leaders also faced doubts about the country’s role in the world, and the system they created in that war’s aftermath was not preordained. After the Vietnam War and the 1970s Watergate scandal, many observers concluded that the United States no longer had the strength, will, or moral authority to play a healthy role on the world stage. In both cases, however, U.S. leaders understood that global peace, prosperity, and security required a powerful and active United States, committed to institutions, rules, and norms, and persuaded their compatriots to support it, with historically unprecedented results. As Americans consider their future role in the world, even as they focus on the need for change, they should keep that record in mind.

Thursday, April 2, 2026

Why Trump Didn’t Predict the Gas-Price Spike

By David Frum

Wednesday, April 01, 2026

 

On March 16, two weeks into his Iran war, President Trump assured reporters that he had the Strait of Hormuz problem well in hand. “And we’re hammering their capacity to threaten commercial shipping in the Strait of Hormuz, with more than 30 mine-laying ships destroyed,” he said. “We hit, to the best of our knowledge, all of their mine-laying ships.”

 

On March 31, the national average price of gasoline at the pump surpassed $4, the highest level since the post-pandemic shocks of 2022. One-fifth of the world’s oil and liquefied natural gas usually flows through the strait, but hasn’t since Iran began impeding the waterway in early March. Yet Trump continues to insist that Iran’s partial closure of the strait isn’t a problem. Markets don’t agree with Trump, and neither do his poll numbers.

 

How did Trump get Hormuz so wrong? The answer reveals one of Trump’s most characteristic and most fateful mistakes: his steadfast refusal to acknowledge that Americans live in a world economy.

 

Here he is on March 16 again: “You know, we get less than 1 percent of our oil from the strait. And, uh, some countries get much more. Japan gets 95 percent. China gets 90 percent. Many of the Europeans get quite a—quite a bit.” These specific numbers are, as you might suspect, wrong. China gets about 40 percent of its oil from the Persian Gulf. Still, the general point is correct. Gulf oil flows mostly to Asia, and vanishingly little goes to North America. But what Trump fails to understand is that these geographic details matter little to world energy markets.

 

Trump wishes for a United States economy walled off from the rest of the world. That’s why he loves tariffs so much—and why he refuses to think about what they mean to American producers, who now must pay more for inputs such as aluminum.

 

But with energy, there is no walling off. Most of America’s oil and gas is produced in the United States. American imports come overwhelmingly from Canada and Mexico. But American oil can be put on a tanker and sent to Japan or the European Union if the price across the ocean rises. The global process of buying and selling equalizes prices worldwide. Walling off the U.S. would mean America would have to stop exporting and importing oil. Trump does not want to do that. In fact, he endlessly urges other countries to buy more American oil and gas. As he said in his March 31 comments: “Buy from the U.S.; we have plenty.”

 

Trump’s inability to comprehend the relevance of Persian Gulf supplies to American motorists may explain how he stumbled into his Iran war in the first place. A threat to the Strait of Hormuz may be the most war-gamed problem in the whole U.S. military inventory. It’s thorny enough to have deterred American presidents from attacking Iran for nearly 50 years, no matter how provocatively Iran behaved.

 

“No president was willing to do what I am willing to do tonight,” Trump announced as the first bombs dropped on February 28. But why did Trump go where every other leader had declined to tread? Maybe he was the first president to see this war as an answer because he was the first who did not understand the question.

Monday, March 23, 2026

Trump’s Trade War Is Not Over

By Kevin D. Williamson

Monday, March 23, 2026

 

Liars think everyone is a liar, cheaters think everyone is a cheat, etc.: You know that story. Donald Trump is, from time to time, shocked that the world is not populated by grifters and con artists as thoroughly corrupt as he, and he sometimes confesses his consternation in a way that would be amusing if he were in the high-dollar Palm Beach retirement home where he belongs rather than waging illegal wars willy-nilly in Iran, Venezuela, Ecuador, possibly Cuba, as well as on random boats in the Caribbean, inconveniently located girls’ schools, Democratic cities, and the U.S. economy. He is, by his own telling, distressed that the justices he has appointed to the Supreme Court attempt to follow the Constitution rather than simply do his bidding. Earlier in March, he thundered on his boutique social-media site:

 

The decision that mattered most to me was TARIFFS! The Court knew where I stood, how badly I wanted this Victory for our Country, and instead decided to, potentially, give away Trillions of Dollars to Countries and Companies who have been taking advantage of the United States for decades.

 

…

 

The Democrats on the Court always “stick together,” no matter how strong a case is put before them — There is rarely even a minor “waver.” But Republicans do not do this. They openly disrespect the Presidents who nominate them to the highest position in the Land, a Justice of the United States Supreme Court, and go out of their way, with bad and wrongful rulings and intentions, to prove how “honest,” “independent,” and “legitimate” they are.

 

I do love the sneer quotes around “honest” and “legitimate.” Small wonder he lost his shirt in Atlantic City: Trump has no poker face—he always tells you exactly what he is thinking.

 

Beyond the usual shock all mentally normal people must feel when encountering the borderline illiteracy of the president of these United States—there are exceptions, but one can generally get a decent read on a man’s intelligence from how he writes in his native language, and I’d be shocked if Trump’s IQ were as high as the temperature in Indian Wells yesterday—consider the bluntness of the president’s political corruption as confessed here: There is no pretense that the Constitution or statutes matter, that an independent judiciary is a desirable part of our republican constitutional order, etc. Trump’s vision of jurisprudence is: I gave you what you wanted—a seat on the Supreme Court—and now your job is to give me what I want. I don’t take my oath of office seriously, and if you do, I consider that a personal betrayal.

 

There are, I am told, some poetic sentiments that can be expressed only in French and some psychological states that require German. But in the Age of Trump, we must lean on Yiddish in response to this meshugganah gonif.

 

The illegal war in Iran—and whatever illegal war the president will launch next with the acquiescence of that gutless, mindless rump that still has the bad taste to call itself the Republican Party—has drawn the spotlight away from Trump’s trade war. But the economic bellum Americanum contra omnes into which our nation, its entrepreneurs, its workers, and its capital have been dragged by this senescent gameshow host is very much a going concern. Tariffs remain high by historical standards, and they remain in place without any intelligible legal authority: Trump is supposedly acting under the authority of the Trade Act of 1974, which permits tariffs to address a balance-of-payments crisis—but there is no balance-of-payments crisis at this time and none on the horizon. (A balance-of-payments crisis is what happens when a country lacks funds to pay for necessary imports or is unable to meet its debt-service obligations. We’ll get there, someday, if we keep going in the direction Trump et al. are leading us at the moment, but we are not there at this time, and Trump’s recourse to the 1974 law is, as one might have easily predicted, entirely pretextual.) Trump has for 50 years been hostage to the incredibly asinine notion that the great economic problem facing Americans is that, when foreigners sell us stuff, they don’t charge us enough money, and that the government therefore must find ways to raise the prices of imports. (That ectoplasmic sound you’re hearing is the ghost of every president, prince, or emperor who ever went to the expense of building an army or a navy to keep the trade routes open smacking his incorporeal forehead in disbelief.) Of course, Trump would not put it this way, but what he is doing is waging war on abundance and choice.

 

That becomes clearer the nearer one gets to the real world of American business, which is not very much at all like the make-believe boardroom Trump inhabited as the host of The Apprentice. Ask Ed Schweitzer, until recently the president of SEL, a multi-billion-dollar company that designs and builds systems that help keep electric power systems running smoothly around the world, equipment that prevents blackouts, among other things. Schweitzer’s name is right there on the door—SEL stands for Schweitzer Engineering Laboratories, and he is the firm’s founder and the inventor of the first microprocessor-based instrument for protecting transmission lines and locating faults in them. He started the company in 1982 and made his first sale soon thereafter, to the Otter Tail Power Company in Fergus Falls, Minnesota. A certain kind of populist malcontent will rage, from time to time, that “we don’t make things in this country anymore.” SEL does, operating five major factories in the United States along with regional assembly facilities and other outposts. It also operates facilities in Mexico, Colombia, and Brazil and maintains field offices around the world. The firm carries no meaningful debt and is jointly owned by its more than 7,000 employees. It is one of those quintessential American success stories: A guy who received a first-rate state-college education (PhD, Washington State) had a big idea and started a business in his basement, and now his products help keep the lights on everywhere from Oakland to far-flung Saudi Aramco facilities.

 

All that work and innovation can be turned on its head with a stroke of Trump’s pen, and it has been.

 

When Trump announced his so-called Liberation Day tariff scheme on April 2, 2025, Schweitzer and his team began calculating the cost—or began trying to, at least: As Trump lurched from one tariff regime to another based on his interactions with imaginary worldwide figures such as the Swiss prime minister, keeping up with the damage estimates became a full-time job. “We estimated tariffs would cost us up to $140 million a year. At the time, that would have been about 7 percent of our sales and about half our profits confiscated.” Because of the nature of his clients’ operations, Schweitzer runs a very conservative business. “We use profits to fuel our growth. We don’t borrow money. We do it what used to be the American way and save it before we spend it. We’re in a conservative industry. Electric power utilities and major industries around the world depend on us to run our business in a very, very solid way.”

 

As such, political risk is a constant concern for SEL. Schweitzer once challenged his team to come up with a program for manufacturing certain products entirely in the United States but found that doing so would not only be uneconomical but impossible—there are some microprocessors and other necessary inputs that simply are not available from American sources.

 

“We encourage our suppliers to make what we need from them closer to home—preferably somewhere we can drive a truck to, like the United States, Canada, or Mexico, partly to reduce sovereign risk, war, that sort of things, but also disasters, earthquakes, tsunamis, whatever. And now we’re having to respond to domestic sovereign risk created by the White House,” Schweitzer told me. “One thing I now wonder about is what do our international customers think about sovereign risk in buying products from the United States, including the stuff we make?”

 

There is no such thing as “Made in the USA.” There are firms making cotton balls out of U.S.-grown cotton in North Carolina and Ohio, but even these domestic factories processing domestic material are part of a vastly complex global supply chain—that cotton may come from the Texas Panhandle, but those cotton crops are fertilized with Canadian potash along with other imported materials. And with all due respect to my friends and family in the cotton business, the stuff that SEL makes is a hell of a lot more complicated than a cotton ball. (Though don’t let the simplicity of the end good mislead you about the simplicity of the production ecosystem: You can I, Cotton Ball this stuff all day and never really get a handle on it.) Slapping a sales tax on U.S. importers is not the way to remake global supply chains—which, the pointy-headed libertarian here will point out, may not actually need remaking, a process that is almost certain to impose costs far in excess of any real economic benefit. Trying to get that kind of complex geoeconomic work done under the leadership of a guy who couldn’t figure out a way to make money owning a New Jersey casino with a strip-joint in it is pretty much the definition of a fool’s errand.

 

But Trump’s attitude toward his business-owning constituents is the same as his attitude toward the Supreme Court: The gangsterism is the point. An arbitrary system of trade taxation makes clients and favor-seekers out of every business in the United States, creating opportunities for political advancement and personal enrichment for Trump and his circle of sycophants. “One elected official on the Hill told us, ‘We’ve got great relationships with the White House and the trade representative, let us know what you need and maybe we can get you some kind of an exemption,’” Schweitzer related. “I politely said, ‘No.’ We’re not going to do that. It’s not right for me to be able to call him up and get an exemption. I want an exemption for everybody. Special-interest politics is not draining the swamp—it’s putting more alligators in it. It’s been a good year for alligators and K Street restaurants, but that ain’t the way to run a railroad.”

 

If the Iran war starts to go badly—or maybe if it goes very well, or if Trump simply loses interest in it—it is a safe bet he will turn his attention back to trade.

 

No supply chain is safe.

 

And Furthermore …

 

Since I’ve now touched on the topic twice: Put me down with Alexandria Ocasio-Cortez and Rod Dreher who say that the growth and normalization of gambling in the United States is a social disaster. I could have told you that. And, well, I did. See “Play to Extinction” in Big White Ghetto.

 

Words About Words

 

“Tanty” for “tantrum” is a usage with which I was not familiar—I’m not sure I like it, but it does make the word sound more juvenile, which is, I suppose, the desired effect.

 

Do you know who is just as useless as teats on a boar? New York Times headline writers. I know I am late to this party, but, on the death of Paul Erlich, author of The Population Bomb, the Times writes: “His best-selling 1968 book, which forecast global famines, made him a leader of the environmental movement. But he faced criticism when his predictions proved premature.”

 

Premature? Did you mofos really just write premature?

 

Ehrlich, for those of you unfamiliar with his work, insisted it was a matter of absolute certainty—irrespective of any policy changes that might take place—that hundreds of millions of people would die in the 1970s and 1980s from worldwide famine, that countries such as the United Kingdom would simply cease to exist because of mass starvation, etc. There is much more, of course—he was a global-cooling guy before he was a global-warming guy—and of all the things you could say to characterize his predictions, premature is just indefensible. That isn’t just stupidity—that is old-fashioned tribalism. No progressive hero can ever be wrong (Ehrlich) or a crank (Margaret Sanger) or a crackpot (Linus Pauling) or an antisemite (Jesse Jackson) or  … You can almost hear them scratching out the “Cesar Chavez wasn’t really a progressive icon” pieces right now. When I last wrote about Sanger’s eugenics craziness, I was lectured that she held beliefs that were common at the time, which is true—and so did Jefferson Davis.

 

Premature–what a way to put it! I’m a New York Times and Washington Post subscriber (and very occasional contributor to both newspapers). It is, in my view, really important for a free, self-governing republic with democratic institutions such as ours to have institutions such as the New York Times and the Washington Post. But, guys—jeez.

 

Premature. Somebody ought to get sent down to the Long Island desk for that one.

 

And, While We’re at It …

 

Helen Lewis of That Esteemed Journalistic Institution is not wrong about this, also regarding the Times:

 

It is very strange to publish an article on the gender dynamics of mass shooters and not mention that the two “female” shooters used as flagship examples here were biologically male. Males commit more than 90% of violent crimes.

 

We should probably retire the term “trans women” along with the myth that the people described by that term are in some meaningful sense women. We can treat people with respect and kindness and offer many kinds of social accommodation without being obliged to play make-believe.

 

In Closing

 

A rising tide lifts all boats, the proverb goes. Sometimes, the rising tide has a name—in the case of the WNBA, it is Caitlin Clark. From the Wall Street Journal:

 

The WNBA was on a gradual upswing in 2024 when Clark arrived after breaking the NCAA career scoring record at Iowa. League attendance surged. Viewership on ESPN ballooned by 170%.

 

And even while Clark sat out most of last season due to injury, the WNBA continued its rise. In 2025, regular-season games averaged 1.3 million viewers on ESPN, the same that NBA games averaged on the network in 2024-25.

 

Now, NBA owners who once saw the WNBA as little more than a tax write-off are scrambling to buy expansion franchises. By 2030, the WNBA is set to have 18 teams, up 50% from 2024.

 

The upshot? A rise in the salary cap of 364 percent, which, as the Journal relates, represents “the biggest jump ever seen in U.S. professional sports history.”

 

I like to see hard-working people who are good at what they do get paid.

 

The energy I am personally willing to expend on professional sports of any kind would not, on an average day, be sufficient to light up a 40-watt lightbulb. Labor markets in professional sports are very weird in many ways, but they are, in the end, markets. And markets really do work. You can hector people all day, as Nike for some reason insists on doing, about the importance of women’s sports, but people either buy the tickets or they don’t. And they do.

 

The superstar effect is not limited to sports: From actors to CEOs to nonprofit executives, high-performing outliers command unusually rich compensation and, in the process, can—can, but do not always—raise compensation expectations and norms across an industry. Presidents of state universities, for example, have not always been paid north of $1 million. In the early 1990s, there was an attempt to make a scandal out of Elizabeth Dole’s compensation as president of the Red Cross—$200,000 a year, although she decided to forgo her salary in her first year on the job and had no problem making a multiple of that number from speaking engagements. She was very good at the job. Nonprofits were starting to discover that it makes good financial sense to spend a lot of money on talented executives and fundraisers rather than pay lower salaries to middling idealists. A billion-dollar CEO who makes shareholders $100 billion is not expensive—he is a bargain. If they deliver the goods, then that is money well spent.

 

Caitlin Clark is, as I understand it, a pretty reliable deliverer of the goods. And the fruit of her success is going to show up in a lot of paychecks other than her own. Basketball franchises that used to be worth $x are now going to be worth some multiple of that. A lot of intellectual property is going to get a lot more valuable. Certain sports facilities are going to be more profitable to operate and hence more valuable real estate than they had been. Nearby restaurants, hotels, and parking garages may in some cases grow more valuable as well. I couldn’t tell you what team Caitlin Clark plays for with a gun to my head, but I am happy to stand up and cheer for shared prosperity. Sometimes, the cup runneth over.