Trump’s threats are back in full force to wreck the economy

In what many see as a troubling repeat of past economic missteps, President Donald Trump has announced plans to reintroduce sweeping tariffs on several of America’s key trading partners starting August 1 once again raising concerns about potential economic fallout.

Canada became the latest target on Thursday night when Trump posted a controversial letter on Truth Social, notifying Prime Minister Mark Carney of a steep 35% tariff on Canadian imports. This new rate surpasses the previous 25% tariff Trump imposed before backing off under pressure leading some critics to jokingly refer to the pattern as “TACO,” short for “Trump Always Chickens Out,” referencing his tendency to withdraw after economic warnings.

The letter to Carney, criticized for its erratic capitalization and misleading claims, mirrored similar communications sent to other nations, signaling Trump’s intention to enact broad new tariffs across the board come August.

Brazil was also singled out. Trump reportedly threatened a 50% tariff on Brazilian goods unless the country stops prosecuting former President Jair Bolsonaro, a close political ally of Trump. Critics have described the move as economic blackmail, alleging that Trump is leveraging trade policy to interfere in another nation’s legal affairs.

Smaller Asian countries weren’t spared either. Trump’s threats resemble the “Liberation Day” tariffs he previously proposed in April but put on hold after markets plunged and economic analysts raised alarm over possible financial damage.

This time, however, the markets have remained relatively steady, with investors seemingly unconvinced that Trump will follow through. Wall Street appears to be betting on a repeat performance where Trump backs down before the tariffs take effect.

Economist Justin Wolfers summarized the situation on X, writing: “Liberation Day: Markets crashed and recession fears spiked. Now: Similar tariffs are back. Trump seems to have forgotten the basic economic rule: repeating failed strategies won’t yield new outcomes.”

Whether Trump will ultimately enforce the tariffs remains uncertain. But if he does, experts warn the consequences could be severe rising inflation, business failures, and a potential recession that would hurt millions of Americans.