Yesterday I wrote at length about why Trump’s proposed tariffs on steel and aluminum are disastrous policy, likely to lead to retaliation, decreased exports, job losses, and general economic turmoil. Well, we haven’t seen the last of it. The Dunce in Chief is so excited by the prospect of a trade war that he is continuing and escalating the threats:

President Trump on Saturday threatened to hammer European automotive companies with steep tariffs as his global trade war snowballed into a third day.

Trump, in a series of Twitter posts while at his Mar-a-Lago resort in Florida, appeared to be responding to warnings from European leaders that his promised tariffs on aluminum and steel would trigger retaliation from numerous major U.S. trading partners.

Bring it on, Trump wrote.

Here are the tweets:

The United States has an $800 Billion Dollar Yearly Trade Deficit because of our “very stupid” trade deals and policies. Our jobs and wealth are being given to other countries that have taken advantage of us for years. They laugh at what fools our leaders have been. No more!

— Donald J. Trump (@realDonaldTrump) March 3, 2018

If the E.U. wants to further increase their already massive tariffs and barriers on U.S. companies doing business there, we will simply apply a Tax on their Cars which freely pour into the U.S. They make it impossible for our cars (and more) to sell there. Big trade imbalance!

— Donald J. Trump (@realDonaldTrump) March 3, 2018

I explained yesterday that a trade deficit is actually a good thing, unlike deficits in government spending. A trade deficit means that foreign countries consider U.S. companies to be a good investment, and that the U.S. is prospering from the division of labor and the ability of other countries to provide certain goods inexpensively. But the Economic Genius sitting in the Oval Office doesn’t understand any of this (even though aides have tried to explain it to him).

Susan Wright noted earlier today that the fallout is just beginning, with Electrolux announcing a delay in a $250 million investment in Tennessee. The more this escalates, the worse it will get.

And you’ll pay more. Sure, it will be “only” a few hundred extra bucks for a car. You’re fine with that, right?

The emperor has no clothes. This stuff is insanity and threatens to stop the recovery in its tracks and go full speed in reverse. Those who understand what is happening need to stand up and speak loudly. Now — while there’s still time.

[Disclaimer]