The Intelligence from The Economist Thy neighbours, beggared: Trump’s opening tariffs
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Feb 3, 2025 
Henry Kerr, Economics editor for The Economist, dives into the impact of Trump’s tariffs on the U.S., Canada, and Mexico. He critically examines the historical context behind these trade policies and the potential ramifications for future economic relations. Kerr also touches on the fascinating revival of supersonic travel, highlighting Boom Supersonic's XB-1 aircraft. Additionally, he discusses the curious rise of standing ovations in London's theatres, questioning the authenticity of audience reactions in the arts.
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Justification and Outlook for Tariffs
- Trump's justification for tariffs includes national security and economic goals, creating uncertainty for Canada and Mexico regarding tariff removal.
- He views trade deficits as subsidies and aims to re-industrialize the American economy using tariffs, despite the economic incoherence.
Economic Impact of Tariffs
- While tariffs can be a powerful negotiating tool, Trump's economic justification lacks coherence, particularly his view of trade deficits as subsidies.
- The tariffs will likely cause economic disruption and market reactions, potentially constraining Trump's actions.
Concorde's Rise and Fall
- Concorde, a supersonic passenger jet, offered luxurious but expensive travel until its last flight in 2003.
- Despite its iconic status, the crash in 2000 and 9/11 severely impacted the Concorde's viability.