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This morning, President Donald Trump used the standard diplomatic channel—his Truth Social account—to announce retaliation against Canada for Ontario’s new electricity tariffs, which were themselves retaliatory.

“I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD. This will go into effect TOMORROW MORNING, March 12th,” Trump wrote. The rest of the message is much stranger, again promising the annexation of Canada: “The artificial line of separation drawn many years ago will finally disappear, and we will have the safest and most beautiful Nation anywhere in the World.”

Earlier this evening, Ontario’s premier, Doug Ford, pulled back the electricity tariffs after securing a meeting with U.S. Commerce Secretary Howard Lutnick, and the White House dropped its threat. Ford likely recognized that no matter how belligerent a stance Trump takes, he can be easily induced to change his mind.

Consider what’s happened with tariffs over the past 45 days. On February 1, Trump announced 25 percent tariffs on both Canada and Mexico, to take effect on February 4. On February 3, he announced a one-month pause in implementation. On February 26, he said he might not actually impose the tariffs until April 2; the next day, he said they’d start on March 4. On March 2, Lutnick suggested that the tariff situation was “fluid.” On March 4, the tariffs went into effect after all.

Confused yet? We’re just getting started. That afternoon, with stock markets reacting poorly, Lutnick suggested that the tariffs might be rolled back the next day. Indeed, on March 5, Trump announced that he was suspending parts of the tariffs related to auto manufacturing until April. And then, on March 6, he suspended all of the tariffs until April. Trump once told us that trade wars are “easy to win.” Now he seems unsure about how to fight one, or whether he even wants to.

If the defining feeling of the start of the first Trump administration was chaos, its equivalent in this term is whiplash. The president and his aides have been changing their minds and positions at nauseating speed.

Many of the reversals seem to come down to Trump’s caprices. On February 19, he called Ukrainian President Volodymyr Zelensky “a dictator.” About a week later, he disavowed that. “Did I say that? I can't believe I said that,” he told reporters. “I think the president and I actually have had a very good relationship.” The next day, Trump berated Zelensky in the Oval Office, sent him packing, and began cutting off military help to Ukraine. This afternoon, the U.S. restarted military and financial aid once again.

Another leading cause of whiplash is Bureaucrat in Chief Elon Musk’s U.S. DOGE Service. Last week, the General Services Administration put up a list of more than 400 buildings that the cost-cutting crew had deemed inessential for government operations. The inventory included some eye-raising entries, including the Robert F. Kennedy building—headquarters of the Justice Department—and the main offices of the Labor Department and the FBI, but also some peculiar ones, such as steam tunnels underneath Washington, D.C. (One imagines that the wrong buyer could cause a great deal of mayhem with those.) Within hours, more than 100 entries had been removed from the list; by the next day, it was gone entirely, replaced by a “coming soon” message—though not before revealing a semi-secret CIA facility.

DOGE and other efforts to slash the federal workforce keep overstepping and requiring reversals. In some cases, officials seem to be discovering that the things Trump wants are either impracticable or too politically toxic to effect. Musk posted on X that if federal workers didn’t respond to an email, it would be tantamount to their resignation. Then the threat was removed. Then Musk sent another email. Thousands of federal workers have been laid off, only to be called back to work. Some workers who accepted a buyout offer were then fired; others had the offer rescinded. Musk tittered over canceling and then uncanceling Ebola-prevention programs, though some officials dispute that they were actually uncanceled. The administration planned to shut down the coronavirus-test-distribution program, then ultimately suspended but did not end it; it killed but then resuscitated a health program for 9/11 survivors.

Trump isn’t just going back on specifics. Some of his core campaign propositions are also looking shaky. Despite campaigning on the deleterious effects of inflation, he now says that it’s not a top priority. He promised booming wealth for Americans; now he can’t rule out a recession and is warning that people will need to endure some pain (for what higher purpose, he hasn’t made clear). And even though Trump has long said that he won’t cut Medicare or Social Security, Musk is now targeting them and calling Social Security a Ponzi scheme.

This kind of vacillation creates an obvious credibility problem for the president and his administration. As I wrote during Trump’s first presidency, foreign leaders quickly concluded that he was a pushover, easily convinced by flattering words. Trump practically always folded in a negotiation. This history, combined with his mercurial moods, mean that counterparts don’t assume they can take him at his word. In the case of Canada, Trump seems to have come out with the worst possible outcome: Canadian leaders believe he’s deadly serious about annexing the country, a quixotic goal, but they have no reason to take his bluster about tariffs, which he can actually impose, all that seriously.

The situation might be even more dangerous if observers took Trump at his word. His dithering has given markets the jitters, but the economic impacts might be more dire if traders acted as though they expected him to follow through on all of his tariff threats. (After he said this past weekend that a recession is possible, markets plunged. Did investors believe he had some secret plan up his sleeve until then?)

Uncertainty is bad for markets, but the problem is larger than that. One of the most fundamental roles of the state is to create a sense of consistency and stability for society. That provides the conditions for flourishing of all kinds: economic, artistic, cultural, scientific. Trump is both seeking to seize more power for himself and refusing to exercise it in a way that allows the nation to flourish.

Today, my colleague Adam Serwer wrote about the detention of Mahmoud Khalil, a leader of pro-Palestinian protests at Columbia University who has not been charged, much less convicted, of any crime. This, too, calls into question the stability of the rule of law—specifically, the long-standing fact that the First Amendment and due process apply to legal permanent residents. (Last month, I wrote that Trump’s actions were showing that his commitment to free speech was bogus. He seems determined to prove me right.) The first months of the Trump presidency have been whiplash-inducing, but in the long term, the failure to set and follow consistent rules threatens national pain much worse than a sore neck.

Related:

Mahmoud Khali’s detention is a trial run. The free-speech phonies

Here are three new stories from The Atlantic:

His daughter was America’s first measles death in a decade. ICE isn’t delivering the mass deportation Trump wants. The only question Trump asks himself

Today’s News

Ukraine has agreed to an immediate 30-day cease-fire if Russia accepts the plan proposed by the United States. Ontario suspended its 25 percent electricity surcharge for some U.S. states after Donald Trump threatened a 50 percent tariff on steel and aluminum for Canada. The former Philippine President Rodrigo Duterte, who started a widespread crackdown on drugs, was arrested on an International Criminal Court warrant for crimes against humanity.

Dispatches

Work in Progress: “The chaos emanating from Washington comes at a time when the economy is already slowing,” Annie Lowrey writes. Maybe don’t invite a recession in.

Explore all of our newsletters here.

Evening Read

Illustration by The Atlantic. Sources: Kent Nishimura / Bloomberg / Getty; Andrew Caballero-Reynolds / AFP / Getty.

Anti-Semitism Is Just a Pretext

By Jonathan Chait

The [Trump] administration is threatening more arrests of foreign-born campus activists, and more funding cuts, all supposedly to contain anti-Semitism, at the same time that it is elevating anti-Semites to newfound prominence and legitimacy. Donald Trump opposes left-wing anti-Semitism because it is left-wing, not because it is anti-Semitic. And his campaign to supposedly stamp it out on campus is a pretext for an authoritarian power grab.

Read the full article.

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P.S.

On my evening to-do list once I finish this newsletter: Pick up my copy of my colleague Olga Khazan’s Me, but Better at my local bookstore. In 2022, she wrote one of my favorite Atlantic stories ever about her three-month attempt to change her own personality. In the book, which is out today, she goes deeper. Olga is a very funny writer and great at sorting through and explaining complicated science, but for me, what makes her such an outstanding journalist is her ability to see and question a lot of the things that most people take for granted. I feel safe guessing that her research didn’t change that part of her personality.

— David

Stephanie Bai contributed to this newsletter.

When you buy a book using a link in this newsletter, we receive a commission. Thank you for supporting The Atlantic.

US President Donald Trump faces increased pressure to stimulate economic growth after a brutal market selloff on Monday indicated rising recession risks.

On the campaign trail last fall, President Donald Trump promised a “new era of soaring income, skyrocketing wealth, millions and millions of new jobs, and a booming middle class. We are going to boom like we’ve never boomed before.” On Fox News this weekend, he promised a “period of transition.” He added: “It takes a little time. But I think it should be great for us. I mean, I think it should be great.” When the host asked, “Are you expecting a recession this year?” he didn’t say no.

The White House has traded a message of prosperity now for a message of prosperity soon, forecasting that the budget cuts and tariffs the Trump administration is implementing will redound to the country’s welfare in the near future: Businesses will bring their overseas operations back to America; a leaner government will leave more income for American firms and households. But economists doubt that the Trump administration’s policy changes will promote growth. And Trump’s message isn’t inspiring confidence among businesses and consumers. That alone might be enough to pitch the country into a downturn.

Already, Trump’s policies are slowing down the economy. The administration has kicked off a global trade war. It announced tariffs on Canada and Mexico, spurring the Canadian government to retaliate with its own tariffs, which then spurred Washington to retaliate for the retaliation; abruptly reversed some of the levies; increased tariffs on China, causing China to impose tit-for-tat measures; added tariffs to aluminum and steel products; proposed “reciprocal” tariffs on countries with taxes on American goods; and floated the idea of putting export tariffs on American agricultural products.

The tariffs are slowing trade and increasing costs for American consumers. Companies including Best Buy, Target, and Walmart have warned that they will have to bump up prices as import costs rise. Moreover, the unpredictability around the implementation of the tariffs has led to chaos in the markets. An index of policy-related uncertainty hit its highest-recorded level, aside from the early months of the coronavirus pandemic. Businesses are less sure of the country’s prospects now than they were after 9/11 or during the housing-market collapse in 2007. Manufacturing firms are pulling back on investment; companies are slowing down mergers and acquisitions; firms are downgrading their earnings estimates. The stock market has lost $4 trillion in value, as traders dump equities for safer investments.

Asked to clarify the White House’s trade policies this weekend, Trump responded: “We may go up with some tariffs. It depends. We may go up. I don’t think we’ll go down, or we may go up.” Businesses should stop whining about needing policy certainty, he said: “They always say that we want clarity,” but they “have plenty of clarity.” The real issue, he argued, was that “our country has been ripped off for many decades, for many, many decades, and we’re not going to be ripped off anymore.”

Beyond new taxes on businesses and consumers, the Trump administration is rescinding federal contracts and firing tens of thousands of federal workers, in many cases illegally. These cuts have not yet shown up in the jobs report, but economists expect them to, starting next month. Challenger, Gray & Christmas, an outplacement firm, estimates that the government has let more than 60,000 workers go—enough to wipe out nearly half of the employment gains the economy notched last month—and notes that private businesses are amping up layoffs as well.

The Trump administration argues that the country has to go through a “detox period,” as Treasury Secretary Scott Bessent put it. Yet the administration is not just cutting waste and eliminating fraud. The cuts at the IRS, for instance, are likely to reduce federal revenue by denying the government the resources it needs to audit high-income taxpayers. The Social Security cuts could interfere with seniors’ ability to access their retirement benefits.

The chaos emanating from Washington comes at a time when the economy is already slowing. Consumers are still being battered by high prices, particularly for housing; credit-card debt and default rates are climbing; the labor market is seizing up, with workers afraid to quit their jobs and hiring rates falling. As a result, indexes of consumer sentiment and small-business optimism are plunging. Last month, households became more pessimistic about current labor conditions, future business conditions, future income, and future employment prospects, the Conference Board reported.

Voters’ fear of a “detox period” or a “period of transition” could itself force the country into a literal vibecession, as households, feeling dour, pull back. Consumer spending makes up roughly two-thirds of the economy, and consumers make spending decisions not only on the basis of their own finances but also on their sense of where the country is headed. Reading the headlines on tariffs and hearing about DOGE-related job cuts, some families might put off the purchase of a new car. Others might cut short a summer vacation, decide to wait on a home-improvement project, or quit ordering pizza on Fridays. At the same time, firms might decide to wait on building a new plant or expanding into a new region, reducing employment gains and sapping revenue from other firms.

A downturn could result—or, even worse, given the tariffs’ impact on prices, a period of stagflation. Congress and the Federal Reserve would be faced with the choice of increasing spending and lowering interest rates to help create jobs, or lowering spending and increasing interest rates to hold down prices, incapable of doing both at the same time. The Trump White House might compound the pain by, as Elon Musk suggested, slashing Medicaid and Social Security benefits to finance tax cuts for rich households.

“It takes a little time,” Trump said of his promised boom. “But I think it should be great.” Instead, we might have a recession. We might have it soon. It definitely won’t feel great.

This is a breaking news story, more details to follow.