Donald Trump fervently wishes to boost domestic manufacturing. His administration is rolling out tariffs on his country’s largest trading partners to encourage companies to shift their operations to the United States. The U.S. president appears blithe about any potential economic disruption caused by such actions. Yet history shows periods of heightened policy uncertainty are often associated with weak economic growth. For example, President Franklin Roosevelt’s New Deal reforms of the 1930s ultimately failed because his economic policies discouraged companies from making new investments. Trump is making the same mistake.
