The stupidest episode in American economic history continues

Here is a chart from the World Bank showing average tariff rates that were actually charged along with how they changed in the 20 years from 2002 to 2022. Despite some tariff levels that are higher than they need to be, the direction of travel was towards zero.

It's all so stupid.

The market was probably willing to go along with some US tariffs to accelerate this trend and take down some other non-tariff barriers but Trump went nuclear and the whole thing is boomeranging into a devastating blow up in stocks and bonds.

The economy is next.

Here is Olivier Blanchard, former chief economist of the IMF:

Gigantic tariffs on China. Implemented without delay. Unclear specific instructions. An administration without the means to implement it right. So goods that will not come, goods that will be unavailable at any price, exploding prices for others. Expect the news of the next few days (unless some other grenade explodes) to be dominated by stories of shortages, disruptions, small business bankruptcies. (Remember Covid…)

S&P 500 futures are down 2%.