Fiscal effects are what everyone focuses on, but tariffs have many other goals geopolitically. Those other goals include negotiations that may leave the economy better off than before.
True, but it's exemplary Q2-term thinking. Whatever goals US is about to achieve, is it worth it to backstab allies over them? US proves itself as an unreliable partner, so long-term, other countries will work on decoupling from the US, minimizing its soft power. Over the next few years, Canada and Mexico will for sure pivot more towards EU.