The Wall Street Journal, owned by media mogul Rupert Murdoch, has once again launched a sharp critique of President Donald Trump's economic policies, specifically targeting his approach to tariffs. This latest editorial comes in the wake of a significant Supreme Court decision that struck down Trump's so-called "Liberation Day" tariffs last week.
Editorial Board's Warning on Tariff Strategy
In its Monday edition, the newspaper's conservative editorial board argued that the prudent course of action for the President would have been to "take an off-ramp and forgo or pause new" tariffs. The board emphasized that this would have been "the smart play" following the judicial setback.
Trump's Alternative Approach Using 1974 Trade Act
Instead of backing down, the editorial noted that Trump has "dusted off Section 122 of the Trade Act of 1974 as a work-around." This legal maneuver allows the President to "impose tariffs of up to 15% across the board for up to 150 days" to address what the act describes as "large and serious United States balance-of-payments deficits."
Potential Consequences for Economy and Politics
The Wall Street Journal's editorial board expressed concern about the broader implications of this strategy. "Trump is aiming in fury at the Supreme Court, but he will end up hitting the economy and Republicans in Congress," the board warned.
The editorial highlighted several potential negative outcomes:
- Legal challenges that could create prolonged uncertainty
- Increased business uncertainty that might affect economic stability
- Political consequences for Republican candidates in the upcoming midterm elections
The board specifically noted how the use of this 1974 trade provision "could result in legal challenges, may 'create more uncertainty for business' and cost Republicans in the upcoming midterm elections." This represents a significant escalation in the newspaper's criticism of Trump's economic policies, particularly his persistent focus on tariff-based approaches to trade issues.
