“The Dangers of Arbitrary Trade Policy,” written by Professor Emerita of Economics Mary Lovely, was published in the New York Times. Following is an excerpt:

Although both the first Trump administration and the Biden administration played fast and loose with the nation’s trade laws, at least they linked their actions to the economic goals for trade policy that are set forth in existing legislation. Ensuring open markets for American exports and protection from unfair practices are goals for which Congress clearly authorized the possible use of tariffs by the executive branch.

In its first month in office, however, the new Trump administration has set aside those norms, sending volleys of tariffs and tariff threats despite the predictable damage to Americans and to its trade partners. Congress has yet to push back. The executive branch alone now sets American trade policy, under the guise of national security, as Congress watches from the sidelines.

The dangers of a trade policy in which a president chooses targets and punishments at will are becoming increasingly clear. Economic coercion often works in the short run, but it slowly erodes one’s network of influence. Mr. Trump’s threats against Mexico and Canada displayed no concern for the terms of the United States-Mexico-Canada Act, a legally valid trade agreement signed by Mr. Trump himself; why would other nations want to enter into similar agreements?

By claiming tariffs as his preferred weapon, the president has chosen a powerful instrument to reward and harm not only foreign nations but also domestic interests. Tariffs create domestic winners (those who receive protection) and domestic losers (those who must pay higher prices).