Trade War: A Wrestling Match with Real Economic Consequences

The US-China trade war: A wrestling match with real economic consequences. The recent US-China trade war has been marked by a series of dramatic shifts in tariffs, leaving many to question the underlying motivations. Economist Kyla Scanlon offers a unique perspective, likening the situation to professional wrestling's "kayfabe," a term referring to the staged reality of the sport. Scanlon argues that the frequent adjustments to tariffs, often described as a "rollercoaster" by analysts, are less about genuine economic policy and more about political theater. "The administration is running the government like somebody would WWE," Scanlon states, referring to the unpredictable nature of the trade negotiations. She cites instances where tariffs were implemented with little transparency or clear economic rationale, only to be adjusted repeatedly. The consequences of this approach have been significant, with the Budget Lab estimating that the compromise will still cost the average household around $2300 a year. Walmart's recent price increases are a stark reminder of the real-world impact of these policy shifts. While some argue that these tariff adjustments were necessary, Scanlon's analysis raises concerns about the lack of transparency and the potential for long-term economic damage. The situation underscores the need for more open and predictable trade policies that prioritize economic stability and the well-being of the average citizen.