Trade wars, like most wars, are dumb and they inflict unnecessary pain.
“I don’t think we’re going to have a trade war, but if we did, it would be horrible,” Laffer told Bloomberg Television in an interview Tuesday. “We’ve got all sorts of things going for us and the only thing blocking is the threat of trade war.”
Laffer, perhaps best known for his “Laffer Curve” principle of supply-side economics that argues tax cuts help pay for themselves by spurring growth, said “no economist in his right mind would ever want a trade war.” Laffer praised Trump for an “amazing” performance as president and added, “I don’t think he wants a trade war at all,” citing a potential drag on financial markets.
Trump can’t want a trade war. He knows the damage that would ensue, and so do the people around him.