Even though Bannon has gone, the darker side of Trump is still winning

nationalist, protectionist Trump.

For the administration also pushed out two key items on the economic nationalism agenda: a bellicose stance in the renegotiation of the North American Free Trade Agreement (NAFTA); and rumblings about an investigation into Chinese intellectual property (IP) practices. Robert Lighthizer, US Trade Representative (USTR), opened the NAFTA talks on Wednesday by warning the US would not be looking for “tweaks” to the “failed” agreement. Instead, America wants wholesale change to reduce trade deficits. This confirms the worst fears of those who had hoped that Trump’s factually incorrect rhetoric on trade would not translate into policy.

The president also signed an executive memorandum directing the USTR to “consider” a Section 301 investigation of Chinese policies towards American IP. US firms have long complained of forced technology transfers in China in return for market access, and the move was welcomed on Capitol Hill as long overdue. However, it landed alongside an interview from Bannon, in which he said that “to me, the economic war with China is everything”. While a Section 301 investigation would be well-merited, a trade war with China would be disastrous. Bannon may be gone, but his White House acolytes remain. Besides, in this case the zero-sum philosophy of “either we win or they do” starts with Trump.

Make no mistake: economic nationalism presents an existential threat to American society. Tariffs rarely seize the headlines, but their destructive power is awesome. Let’s hope that the better angels of Mr Trump’s nature win the war; they have lost today’s battle.