The Daily Signal Victor Davis Hanson: The ‘Trade War’ That Never Was
Apr 24, 2025
Victor Davis Hanson, a military historian and political commentator, delves into the myth of the so-called trade war. He argues it was a necessary step to address chronic trade deficits affecting the U.S. economy. Hanson discusses President Trump's tariff negotiations, suggesting that perceived 'caving' may be a strategic move rather than a failure. He highlights the significance of trade agreements with countries like South Korea and Japan, while warning about Europe's potential sidelining in future negotiations.
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Trade War Was Strategic Leverage
- The U.S. trade war under Trump was not a real war but a strategic effort to reduce chronic trade deficits harming American industry.
- The administration used tariff threats as leverage to negotiate better trade agreements in an "Art of the Deal" approach.
Pressure Spurs Cooperation
- Trump's tough stance pushed NATO members to increase defense spending, showing pressure can prompt cooperation.
- Similarly, early trade deals with countries like India and South Korea gain favorable terms, motivating others to join.
Europe's Trade Resistance Hurts Them
- European countries prioritize opposing Trump over their economic self-interest by stonewalling trade deals.
- Meanwhile, Asian countries seek deals, reaping benefits and placing Europe at a disadvantage.