Kerre Woodham: Trump has power and he's not afraid to use it

As promised, Donald Trump has launched a trade war against America's largest trading partners, with huge tariffs on Canada, Mexico and China kicking in yesterday, sparking angry retaliation from all three. 25% tariffs on Canada and Mexico, a doubling of duties on Chinese goods to 20%.  

Canadian Prime Minister Justin Trudeau slammed the tariffs as “a very dumb thing to do” and said that it will be American families who will be harmed with price hikes across all household goods. Trudeau also said Trump was seeking to collapse Canada's economy to make it easier for the US to annex his country.  

We live in extraordinary times. Trump is also eyeing the European Union. He's threatened to impose 25% tariffs on all goods out of the EU, and given his actions in recent days, there’s absolutely no reason to expect they won't be next. The EU’s responded with a “go ahead, make my day” promise of retaliatory action. We have an Anti-Coercion Instrument, and we will have to use it, promised the Agriculture Commissioner Christophe Hansen.  

It was designed following the first Trump administration from 2017 to 2021. They call it a “trade bazooka” that provides for broad retaliation in response to what they see as trade discrimination, such as quotas and tariffs or restrictions on foreign investment. It is a big, wieldy, economic tool by all accounts. I don't know if it's effective because it hasn't been used before.  

It would need the backing of 15 of the EU’s 27 member countries and the first resort before they use that is to reinstate punitive duties. They were imposed in response to Trump's first term tariffs, so the first time round when he was using tariffs to control other countries. They put punitive duties on things like Harley Davidson’s, bourbon, Florida Orange Juice. These would likely be expanded to reflect the scale of Trump's new tariffs.  

Now he hasn't put the tariffs on the EU yet, but it is very, very wise of them to come up with a plan should he do so. Italy’s Industry Minister Adolfo Urson suggested that Europe could avoid US tariffs by yielding to Trump's demands, while also calling for unity and warning against a trade war. One way to placate Trump, he hinted, would be to accommodate his demands to boost European defence spending. And that's it. Trump is doing what he's doing because he can.  

“We run the world. This is America's world. He's our proxy. This ends when we say it ends.” 

That's Fox commentator Jesse Watters. He was talking about Ukraine, but ultimately, it is America's world. Trade wars, wars in Ukraine, they end when America says it ends, and that's just a matter of fact. Trump might not have dignity, and he might not have grace, but he’s got power, and by God, he's not afraid to use it. 

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