As with the Iran sanctions, it is becoming clear that Trump's assertions that "trade wars are easy to win" were fallacious. No one ever wins a trade war, just some lose more than others. The retaliating nations have a tremendous advantage of those instigating protectionism. This can be seen with tariffs on steel and aluminum that increases the costs of every product made in the USA that uses those metals. Thus, American consumers and producers are already net losers from these ill-advised protectionist tariffs, even before any retaliation. These tariffs increase consumer prices and make products produced in the USA less competitive relative to those made outside the USA using steel and aluminum priced at the world market rather than the artificially propped-up, protected US steel market.Market risks: As Trump discovered when a retaliatory tariff was put on US motorcycles (Harley-Davidson) that will not raise any costs on any EU producers or raise prices for anyone in the EU, except for buyers of motorcycles, the cost to the retaliating nations is miniscule. HOG has announced it will have to shift production outside of the USA as a result of the tariffs. Thus, on top of the costs to American consumers, producers and exporters of the steel and aluminum tariffs, before any retaliation, American workers at HOG lose jobs and shareholders of HOG suffer as well. Larry Kudlow and other (formerly?) free trade advocates have been struggling to assert that Trump is not engaging in a trade war. Their task was made much more difficult, when Trump referred to the action by HOG as raising the white flag of surrender, a term generally used only in the context of warfare. As might be expected, the equity markets have responded negatively to the prospects a deteriorating trade situation. Another distressing aspect of Trump's protectionism is the reaction by those on the left who epitomize the fact that "protectionism is the progressivism of fools". Bernie Sanders and Senator Sherrod Brown (D-Ohio) are prime examples of the "progressivism of fools" branch of protectionists. The only objective of tariffs supported by those on the left is to transfer wealth to the employees and owners of favored domestic producers. That the costs and losses to the rest of Americans far exceeded the gains to the employees and owners of favored domestic producers is never a concern of the "progressivism of fools" branch. Rather than finally realizing that protectionism lowers standards of living for everyone, the many Democrats whom have been traditionally protectionists, are not rejecting protectionism, but simply complaining that Trump is not engaging in the correct type of protectionism. The "progressivism of fools" branch of protectionists generally only say that Trump policies are the wrong type of protectionism, but do not seem to give any details as to what they think correct type of protectionism would entail. Even worse some of the Democrats seem to be embracing the fallacious arguments regarding national defense reasons for protectionism. With some significant exceptions, most of the Republicans who previously have supported free trade are either conspicuously quiet on the subject or come up with excuses for Trump's protectionist policies along the lines that Trump is only trying to end unfair practices by other countries. That not the media nor almost anyone else has pointed out that most Major American trading partners abide by trade agreements fairly negotiated would seem to be the fault primarily of the American educational system..."Source: Lance Brofman (Specialty: Debt, REITs, macro, ETF investing).