US President Donald Trump clearly likes the idea of using tariffs to wrest concessions from America’s trade partners. But the pursuit of short-term advantage often proves catastrophic in the long run, especially if countries running trade surpluses with the US retaliate by deploying an overlooked weapon.
NEW YORK – On a recent trip to Germany – where I gave a talk on the state of the mergers-and-acquisitions markets and what it implies about business confidence – I stumbled upon the house of Johann Wolfgang von Goethe, the towering writer who produced the most influential interpretation of the legend of Faust. It was a serendipitous development. In that story, a magician and alchemist bargains away his eternal soul to the devil for short-term power and riches. Last week’s tariff announcements could be viewed as America’s Faustian bargain.
NEW YORK – On a recent trip to Germany – where I gave a talk on the state of the mergers-and-acquisitions markets and what it implies about business confidence – I stumbled upon the house of Johann Wolfgang von Goethe, the towering writer who produced the most influential interpretation of the legend of Faust. It was a serendipitous development. In that story, a magician and alchemist bargains away his eternal soul to the devil for short-term power and riches. Last week’s tariff announcements could be viewed as America’s Faustian bargain.