Tariff uncertainty can be as ruinous as tariffs themselves

America’s president tempts many people to invoke the “madman theory” of diplomacy. In dealing with other countries, it helps if they think you are crazy. By making threats credible even if they would harm your own country, such a reputation will let you win games of brinkmanship.

This article appeared in the Finance & economics section of the print edition under the headline “Madcap mercantilist”

Finance & economics February 8th 2025

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