For reasons that obviously have nothing to do with reality, Donald Trump has decided to renege on the trade deal he negotiated five years ago and start a trade war with Canada and Mexico. He wants to tax most of imports from these countries at a 25 percent rate, with the exception of Canadian oil, which will be taxed at a 10 percent rate.

This is a tax increase of roughly $200 billion a year ($1,600 per family) that will overwhelmingly be paid by moderate-income and middle-income families. It is the largest tax increase on them that has ever been imposed. And retaliation from both countries is likely to impose additional costs.

Meanwhile, both Canada and Mexico are struggling to deal with a situation where its neighbor and closest ally has turned into an erratic enemy. They can and should look to retaliate (I trust not honoring patent monopolies for items like prescription drugs and iPhones is on the list), but they should also look to longer term........

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