Wednesday, May 7, 2025

Stop worrying, America. Just keep watching The Trump Show

 https://edition.cnn.com/2025/05/07/business/trump-trade-deal-reality-show-nightcap

This is all part of the show Trump and his advisers have been putting on over the past month. Trust us, deals are coming. Trust us, this economic pain is for your own good. Trust us, your kids don’t need as many toys as you think they do. Trust us (a bunch of ex-bankers and one bankrupt casino mogul), Wall Street’s opinion doesn’t matter.

The reality is that the US and Canada have had a mutually beneficial trade relationship for decades. The reality is that our trade deficit with Canada is relatively tiny. The reality is that the US auto industry Trump claims to support depends deeply on free cross-border trade with Canada and Mexico.

That’s the same reality in which the US economy is contracting and America’s credibility as the cornerstone of global finance is being shaken.

It is not the same reality as the TV show variety Trump seems to live in.

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