US Trade Dominance Will Soon Begin to Crack
By
In 2026, the leaders of America’s (former) trading partners are going to have to grapple with the political consequences of tit-for-tat tariffs. A tariff is a tax paid by consumers, and if there’s one thing the past four years have taught us, it’s that the public will not forgive a politician who presides over a period of rising prices, no matter what the cause.
Luckily for the political fortunes of the world’s leaders, there is a better way to respond to tariffs. Tit-for-tat tariffs are a 19th-century tactic, and we live in a 21st-century world—a world where the most profitable lines of business of the most profitable US companies are all vulnerable to a simple legal change that will make things cheaper for billions of people, all over the world, including in the US, at the expense of the companies whose CEOs posed with Trump on the inaugural dais.
