Trump thinks tariffs can bring back the glory days of manufacturing in the US. Here’s why he’s wrong

Economically, Trump’s fixation on goods makes no sense

The decision to apply tariffs on a country-by-country basis means that rules about where a product is deemed to come from are now of central importance. File picture: Larry Cummins

The “liberation day” tariffs announced by US president Donald Trump have one thing in common – they are being applied to goods only. Trade in services between the US and its partners is not affected. This is the perfect example of Trump’s peculiar focus on trade in goods and, by extension, his nostalgic but outdated obsession with manufacturing.

The fallout from liberation day continues, with markets down around the world. The decision to apply tariffs on a country-by-country basis means that rules about where a product is deemed to come from are now of central importance.