- The European Union (EU), Canada, Mexico, and China have responded to Trump’s tariffs on their goods with tariffs on US exports.
- The retaliatory tariffs targeted exports from Trump’s Farm/Rust Belt support bases and from leading Republican’s congressional districts (soybeans, cheese, whiskey, Harley-Davidson’s).
- Already suffering: Low crop prices have reduced annual US farm profits by 50% to $60 billion since 2013.
- Trump’s base is extremely vulnerable to US auto export tariffs.
- Bloomberg estimates a full-blown trade war (10% tariff on all foreign imports) would push US unemployment 2-3% higher.
