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What do airplanes have to do with Scotch? What do steel and bourbon have in common? Those aren’t riddles. They are real questions puzzling American and Scottish whiskey-makers, who have become collateral damage in President Trump’s transatlantic trade war, ostensibly begun merely to boost U.S. metal manufacturing. One reason economists caution against even unilateral protectionism is that it rarely remains unilateral. Tariffs inspire tit-for-tat retaliation, which, in turn, inspires tit-for-tat-for-tit re-retaliation. We learned this lesson in the 1930s, after the United States passed the now-infamous Smoot-Hawley Tariff Act . Then, Congress caved to business groups demanding greater prot... Full story

18 February