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There is a price to be paid for Trump’s ‘deals’

Markets welcomed the president’s reprieve for tariffs on Mexico and Canada, and talks with China. But there’s a big price for using chaos as a bargaining tool.

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What was it that pulled Donald Trump back from the brink of a trade war?

Was it the adults in the room, such as Treasury Secretary Scott Bessent? He must have cringed at this drama, given the words he wrote last year when he was still a hedge fund manager: “Tariffs are inflationary and would strengthen the dollar – hardly a good starting point for a US industrial renaissance.”

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James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com

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    Original URL: https://www.afr.com/chanticleer/there-is-a-price-to-be-paid-for-trump-s-deals-20250204-p5l9b7