This week, Mexico and Canada apparently were able to convince our President that things they were mostly already doing were new things, which earned a 30-day reprieve on massive tariffs being applied on trade between them and the United States.
Anybody who knows anything about the automobile industry (so pretty much any Michigander) can tell you that the U.S. automotive industry supply chain is very tightly interwoven with Mexico and Canada. This is a result of decades of trade agreements that facilitated the tight bonds. You may not like this. You may not think it's a good idea. But it is a fact. And waving a magic tariff wand will not undo it. What it will do is create chaos.
Of course, these sorts of concerns are brushed away by the President's supporters who say his threats are simply a negotiation tactic. Well, two things about that:
First, it still causes damage. Those who run successful businesses that actually build things and create value need to plan ahead. Logistics, legally binding contracts, paying employees — these are real matters they need to deal with. Unlike the President, declaring bankruptcy and walking away is not a standard option.
Second, people tend to remember when they are treated badly. Countries remember when they are treated badly. There are consequences. Even if the United States gains a short-term advantage by threatening friends and ignoring treaties, we will have to deal with other countries exacting revenge when they no doubt get the opportunity.
Editor's note: John Auchter is a freelance political cartoonist. His views are his own and do not necessarily reflect those of Michigan Public, its management, or its license holder, the University of Michigan.
