The Journal. Is Trump Winning His Trade War?
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Aug 1, 2025 
Greg Ip, Chief economics commentator for The Wall Street Journal, dives deep into the intricacies of President Trump's trade strategies. He argues that Trump has created a new, albeit delicate, trade order through aggressive tariffs, especially with the EU and Japan. The discussion emphasizes the historical context of these policies, drawing parallels to past tariff acts. Ip also highlights how geopolitical factors and negotiations with nations like China and Canada shape the current landscape of international trade.
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Historic Tariffs Without Trade War
- Trump has imposed tariffs higher than those under the Smoot-Hawley Tariff Act of 1930.
- Remarkably, this was done without triggering a wider global trade war so far.
EU Yielded Due to Leverage And Security
- The EU agreed to tariffs to avoid worse conflict, fearing economic weakness and losing U.S. security support.
- Fear of Trump withdrawing NATO support kept Europe from retaliating aggressively.
China’s Unique Leverage in Trade Talks
- China gained concessions through its leverage of buying U.S. products and supplying critical materials.
- Unlike allies, China is not deterred by potential loss of U.S. security guarantees, allowing a tariff truce.