Wednesday, May 07, 2025

Perspective.

https://thedailyeconomy.org/article/three-dimensional-trade-chess-explained/

Three-Dimensional Trade Chess, Explained

Supporters of tariffs claim that mainstream economists don’t understand the game. This “game” has been described by Peter Navarro as three-dimensional chess. I want to take that claim at face value, break down its dimensions, and then evaluate whether Trump’s actions are likely to lead to his desired outcomes. And the answer is “no,” because the administration is playing three quite different, inconsistent games all at once. That isn’t a strategy at all; rather, it’s a scheme for certain failure.

Trump and his advisers claim that their policies have three justifications. For simplicity, I will call these (1) security, (2) reciprocity, and (3) revenue. I’ll present these (as the lawyers put it) arguendo, meaning that for the sake of argument, we will just consider the case for Trump’s actions, and mostly put aside the counterarguments.



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