Trump's next trade weapon
Axios · LC · trust 61/100
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Trump is reaching for a more drastic trade war weapon, with new threats to shut foreign goods out of the U.S. altogether.
Why it matters: It would mark a significant evolution of the administration's trade agenda, with potentially bigger economic fallout than the tariffs that have defined it so far.
Driving the news: Trump threatened to ban Canadian aircraft manufacturer Bombardier from selling jets in the U.S., just hours before Canada's retaliatory tariffs on $20 billion worth of U.S. goods took effect this morning.
Between the lines: Top Trump trade official Jamieson Greer has also floated outright bans, saying last month that it could be an option to hit back at Canada's retaliatory tariffs.
The intrigue: The U.S. has banned imports before, though usually as part of sanctions against adversaries rather than as leverage in a trade dispute with a close economic partner like Canada.
The Supreme Court ruling that blocked Trump's emergency tariffs highlighted that a more potent option was available to him.
What to watch: Trump's Bombardier threat is already showing the political realities that can complicate such drastic trade moves.
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