The US president fights 1970s battles in a financialised age. America faces not a payments crisis but a slow erosion of industrial and technological powerWhen the US supreme court voted 6-3 last Friday to strike down Donald Trump’s tariffs, he was incandescent. Two judges he had elevated – Neil Gorsuch and Amy Coney Barrett – were suddenly recast as traitors to the cause. Both were, he insinuated, under the sway of foreign interests. The court ruled that the tariffs overstepped the powers the US Congress granted under the 1977 International Emergency Economic Powers Act. Mr Trump responded by reaching for a 1974 trade law, invoking “international payments problems” to slap on a 10% tariff for 150 days.Mr Trump was moulded by the 1970s. His political DNA was formed in that era’s crises and he governs as if America were still in the Nixon era of shock politics. In some ways there are parallels. The political mobilisation around economic insecurity echoes that period, as does distrust in elite authority. This explains why many populist politicians on the right reach for the 1970s, which fits the mood of decline and rivalry and offers a narrative of “restoring strength”. Internationally, Mr Trump also sees the world through the 1970s lens of industrial rivalry and trade grievance. But the world today is in a far more financialised and interdependent state. Continue reading...