Europe’s VAT Hurts the US? Retaliate with a VAT: Clive Crook

The Trump administration isn’t satisfied with the mayhem it has already inflicted on global trade and investment. Its next step, President Donald Trump says, will be to introduce comprehensive “reciprocal” tariffs. US import taxes are low by global standards, officials correctly point out. So trading partners had better lower theirs to the same rates. Otherwise, starting next month, they’ll face higher matching tariffs on their exports to the US.

By Trumpian standards, this sounds almost sensible. Reciprocity was a cornerstone of the old-fashioned approach to trade liberalization, so advocates of freer trade might be tempted to applaud. Except that the ...