Always Chickens Out?

The editors of the Wall Street Journal approve of President Trump’s apparent change of heart on the acquisition of U. S. Steel by Nippon Steel and try to explain it:

U.S. Steel warned that it might have to close its Indiana and Pennsylvania factories if the Nippon Steel deal failed. Mr. Trump opposed the deal during last year’s campaign as he vied with Mr. Biden to become protectionist-in-chief. But he has reconsidered and now appears inclined to take Nippon up on the deal that Mr. Biden refused.

Nippon has pledged to honor its collective-bargaining agreement with the union and not reduce production capacity for 10 years at U.S. Steel mills without government approval. It also committed to appoint U.S. citizens to top management jobs and to a majority of board seats, plus a “full-time board observer” to ensure compliance with its promises.

The Japanese steelmaker recently sweetened its offer by pledging to invest some $14 billion in U.S. Steel operations, including $4 billion for a new mill. While it would be better if the Administration weren’t trying to play deal-maker, Nippon’s concessions appear to have given Mr. Trump the political cover he wants to bless what he calls the “partnership.”

but ultimately appear to be as puzzled by it as the rest of us. They fall back on what I’m told is a wisecrack being used on Wall Street: “Trump Always Chickens Out”—TACO). It’s an example of why I disapprove of the sort of bluster that is habitual with Mr. Trump. Nearly the opposite of Teddy Roosevelt’s “Talk softly and carry a big stick”. I don’t think American presidents should make threats at all but on the rare occasions that they do they must carry through with them. Strategic ambiguity has not worked well for us, at least not lately cf. 9/11.