The contradictions at the heart of Trump’s tariffs

Good morning. Last week, President Trump imposed tariffs and quickly walked them back. Today we’re explaining why the three goals Trump has laid out for his tariffs are in conflict.

But first, here’s what else is going on:

• In exchange for restoring US aid, Trump wants Ukraine’s president to do more than just sign a minerals deal. He wants Volodymyr Zelensky to also turn over territory to Russia and possibly step down.
• ICE detained Mahmoud Khalil, a former Columbia student and Palestinian activist, his lawyer said. Khalil has a green card and is a lawful permanent US resident.
• Resident-only restaurants. Golf simulators. Private movie theaters. To woo tenants, Boston’s luxury buildings are trying to outdo each other with ever-more extravagant amenities.

Today’s Starting Point

President Trump and his allies are playing defense on tariffs.

Over the past month, Trump has imposed tariffs on goods from Mexico, Canada, and China, only to remove some of them days later. The chaos has led to declines in business confidence, consumer confidence, and the stock market.

But Trump maintains that the disruption is worth it. Tariffs, he argues, will ultimately benefit the US by making the country rich, forcing other countries to make concessions, and rebalancing America’s trade relations. The problem, experts say, is that it will be difficult — if not impossible — to accomplish all three goals.

High hopes

Tariffs are taxes that US companies that import foreign goods pay to the federal government, thereby raising revenue. Trump claims tariffs unleashed economic growth in the late 19th century and will do so again, although many historians find his assessment overly simplistic.

Trump’s second aim is to force other countries to do his bidding by using tariffs as threats to extract concessions from them on immigration, drug policy, and more. He also thinks tariffs will stop foreign countries and businesses from selling more goods to America than they buy in return.

Competing ends

But pursuing all three goals simultaneously won’t work, experts say. To raise revenue, Trump has to impose tariffs and keep them in place. Yet if he wants to use tariffs to force countries to change their behavior, Trump has to lift them once a country meets his demands. Tariffs that never take effect don’t raise any revenue.

The next test of Trump’s tariff policies may come on April 2, when he plans to reimpose the tariffs he postponed on Mexico and Canada. For now, his efforts to square the unsquareable are rattling markets and unsettling industries.

Points of Interest

Boston: Five labor unions endorsed Mayor Michelle Wu for reelection.?

Massachusetts: Detectives can lie to suspects during interrogations. A bill under consideration in the state legislature would ban the practice.

The Nation: Liberal shoppers are boycotting Target, Walmart, and other companies that have scrapped diversity, equity, and inclusion policies. It isn’t easy.

This is a shortened version of today's Starting Point newsletter. Subscribe here to get the full version in your inbox every weekday morning.