Trump doesn’t seem to know why he launched a giant trade war
Trump doesn’t seem to know why he launched a giant trade war
The president’s reasons for imposing tariffs on Canada and Mexico keep changing (and none make sense).
Donald Trump just imposed a 25 percent tariff on virtually all goods produced by America’s two largest trading partners — Canada and Mexico. He simultaneously established a 20 percent across-the-board tariff on Chinese goods.
As a result, America’s average tariff level is now higher than at any time since the 1940s.
Meanwhile, China and Canada immediately retaliated against Trump’s duties, with the former imposing a 15 percent tariff on American agricultural products and the latter putting a 25 percent tariff on $30 billion of US goods. Mexico has vowed to mount retaliatory tariffs of its own.
This trade war could have far-reaching consequences. Trump’s tariffs have already triggered a stock market sell-off and cooling of manufacturing activity. And economists have estimated that the trade policy will cost the typical US household more than $1,200 a year, as the prices of myriad goods rise.
All this raises the question: Why has the US president chosen to upend trade relations on the North American continent? The stakes of this question are high, since it could determine how long Trump’s massive tariffs remain in effect. Unfortunately, the president himself does not seem to know the answer.
In recent weeks, Trump has provided five different — and contradictory — justifications for his tariffs on Mexico and Canada...
...more in the article.
And economists have estimated that the trade policy will cost the typical US household more than $1,200 a year
Remember this, when you hear about tax cuts for the wealthy.
I never liked that many seem to be of the idea that Trump is an absolute buffoon who doesn't know what he is doing. He and his goons are not headless chickens. They are not stupid, and know incredibly well what they are doing and why.
You don't get to win an election twice if you're as much of an idiot as most make him out to be. If we keep underestimating our 'opposition', we will continue to be defeated.
See this article for more: https://unherd.com/2025/02/why-trumps-tariffs-are-a-masterplan/
TLDR:
In this article, Yanis Varoufakis analyzes Donald Trump's economic strategy, arguing that it is more sophisticated than his critics assume. Trump's focus on tariffs is part of a broader plan to reshape the global economic order, which Varoufakis describes as an "anti-Nixon Shock." Trump believes the U.S. has been exploited due to the dollar's role as the global reserve currency, which he sees as a burden rather than a privilege. He aims to weaken the dollar to boost U.S. manufacturing and reduce trade deficits, while maintaining its reserve status to fund U.S. deficits and military power.
Trump's plan involves using tariffs to pressure foreign central banks to lower interest rates, thereby depreciating their currencies relative to the dollar. This would offset the price increases caused by tariffs on U.S. consumers. The second phase of his strategy involves bilateral negotiations with key countries, leveraging tariffs and security threats to force them to appreciate their currencies and make concessions, such as buying more U.S. goods or relocating manufacturing to the U.S.
Varoufakis acknowledges the risks, including potential domestic backlash from Wall Street and the possibility of foreign countries, particularly China, creating an alternative financial system. However, he argues that Trump's plan is coherent and should not be underestimated, even if it diverges sharply from traditional economic thinking.
I know why he did it. Because that's what his best best friend from Kremlin said and his two last working brain cells are in vacation playing golf.
He probably doesn't understand that if US stops all trading, will become just a bigger North Korea with nukes.
He had the idea to raise tariffs, and he believes all his ideas are really good, so he followed his own good advice and raised tariffs, dead simple.
Because his only job now is to sign any papers handed to him by his posse of self enriching gremlins. He doesn't need anyone's vote anymore, he doesn't need anyone's money (except if it starts with a B) and doesn't care anymore because he will likely die in office. If he signs horrible shit billionaires around him want, then he gets to coast as president, no thinking involved. This is what he is doing.
Market manipulation. If you can tank the stock market at a time YOU know well in advance, then you stand to profit "tremendously".
He or people in his stead might have purchased put options ahead of the anouncement of tariffs. -> profits When he then says "it was just a prank brooo!" he can make money by buying the now devalued assets and sell them as soon as they recover. rinse repeat.
I smell market manipulation maybe I am mistaken this smell and it is really the smell of mental instability....
Tariffs allow Trump to pay for his tax cuts to the ultra wealthy by stealing from the working class, without them knowing. He also gets to position himself as a strongman and negotiator. There you go.
It’s part of their plan to eliminate the IRS and federal taxation, to be replaced by a universal sales tax. However, trump doesn’t have the authority to do that. But he can tariff. And a tariff is a little bit like a sales tax.
Therefore, we get tariffs.
Now, the other problem is that the tariff revenue is going to be like 1/10 that of the IRS tax revenue, which will require a 90% reduction in federal spending. Including defense, research, healthcare, and social security. Can’t collect social security tax if the IRS doesn’t exist either, so social security is getting axed.
It will of course make 56 million seniors homeless, but thats a small price to pay for a 15% pay bump for me!
Market manipulation .... upset the system .. make it dive ... buy cheap ... sell them high
Keep doing this for the next four years until you become king of the world!
Trump's 'beautiful' tariffs are just ugly taxes on consumers and businesses alike.
🐱
Does he know where he is, what time of day, or even which day of the week? ok maybe we should see if he can repeat this: "Person, Woman, Man, Camera, TV" he seemed to pride himself in his ability to allegedly be able to do so..... .....allegedly....
Because at his age it was easier than getting penis-enlarging surgery.
The chaos is the point: make nothing normal, make nothing certain, and he can be free to do anything.
Techbro led gvmt - move fast, break stuff. Chaos leads to opportunity to profit, by which I mean him and his class to profit.
Playing stupid games.
Also Trump: Has anyone seen my tan spray? Sir, you left it in the fridge again. Here. That's not it, that's barbecue sauce!
He's a very smart person /s
