COMMENT | Whether it is a bargaining trick or not, some of the major transaction-oriented deals by US President Donald Trump - and his tantrums - are not going to have the desired effect on the US economy; in fact, they may well severely damage it, forcing an about-turn.

Let’s start with tariffs. The world’s economic gears are so enmeshed and move together in synchrony that if someone throws a spanner into the works in just one area, it can have a chain effect on quite nearly the entire economy.

Reuters reported that new 25 percent tariffs on imports from Mexico and Canada would have taken effect on Tuesday, along with a doubling of duties on Chinese goods to 20 percent, sparking trade wars that could slam economic growth and lift prices for Americans still smarting from years of high inflation.

The tariff actions, which look set to upend nearly US$2.2 trillion in annual trade, went live after Trump declared that the top three US trading partners failed to do enough to stem the flow of fentanyl and its precursor chemicals into the US, Reuters added. They referred to Mexico, Canada, and China.

Delaying some tariffs

But there are already signs of a pullback when Trump subsequently announced a delay yesterday, imposing tariffs on Canada and Mexico because of the impact of the higher costs on the US car industry itself.

Not only this, his...